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Bankruptcy Tips – How Consumer Debt Settlements Are Surpassing Bankruptcy

April 11th, 2021

If you are deep in debt and are getting worried and looking for bankruptcy tips then I have some advice for you. Bankruptcy is getting harder to get and will damage your credit score very much. However nowadays consumer debt settlements are surpassing bankruptcy due to some new laws.

Previously it was easier to file for chapter 7. A lot of people went bankrupt. However the financial institutions were not happy with this and this was hurting the economy. Eventually a new legislation was passed which is stricter. So now it is harder to get chapter 7. What is being focused now on is chapter 13 which is debt restructuring. In it you still have to pay back your loans but the law will decide what to do with you and how to force you to pay back your dues. You will either get 3 years or 5 years to pay it back depending on your income and some other conditions.

These legislation have led to lesser bailouts. However since there are still people having problems paying back their debts and can no longer file for bankruptcy or get it they are going towards debt settlements. The reason debt settlements are surpassing bankruptcy is that they are becoming a better option that bankruptcy.
Getting a debt settlement means you will still have to pay back some part of your debt. In debt settlement what happens is that you negotiate with your creditor. You tell them that you will not be able to pay your dues. Since you filing for bankruptcy would be a complete loss for them they agree to cut it down to something more manageable for you because they want to minimize their losses. So they may agree to reduce your debt. Sometimes they may even reduce it up to 70%. It all depends on some factors such as your financial health, income and others.

The hit your credit score will get from a debt settlement will also be lower than what you would have gotten from a bankruptcy filing. And once you pay the amount due the bank will consider your account settled. For this growing need there are many companies who will help you get a debt settlement for a fee. These companies will use their expertise to get the best deal for you. There are also some good debt relief networks which keep a check on these companies and you should contact these networks if you are thinking about getting a settlement.

If you have over $10k in unsecured credit debt there is legitimate help out there. Instead of going right to a debt settlement company you might have heard on the radio or television, it would be wise to use a debt relief network. This way you can b

Bankruptcy – Tips & Advice About Dealing With Your Debt – Debt Relief is Better Than Bankruptcy

February 11th, 2021

Bankruptcy is one of the prescribed options to clear your debt. It should be taken as the last resort. Many Credit card users in the US have been having a tough time. They have collected massive debts and have no means of clearing them. You too are amongst them and are looking for debt relief.

Bankruptcy is a very serious legal procedure and needs to be taken with the seriousness it warrants. It is a legal provision by the rules of the government to assist those people in financial difficulties. It commences by you going through a counseling session with a government approved professional debt counselor. After going through the counseling session it will be established if you are eligible for bankruptcy. It also requires huge fees to file bankruptcy which could range from $200 to $300.

Take a look at the protection you get from bankruptcy. It is a common misnomer to think that you will not loose your home and other personal assets by filing bankruptcy. The bankruptcy laws vary from state to state. Some states do not even exempt home equity from bankruptcy. Thus if you happen to reside in these states and file for bankruptcy you may end up losing your home too. Debts acquired through fraud and with no intention of paying it back can not be discharged by bankruptcy. If you have maxed out on all your Credit cards and are hoping to clear the debt using bankruptcy you will be in trouble.

Go for a debt settlement instead. You can seek to reduce your net outstanding debt by making a one time payment for up to 50 percent of the amount. The creditors will give you a discount or waiver for the balance amount. Your Credit score will also remain relatively unharmed when compared to bankruptcy. Therefore go in for a debt settlement instead of bankruptcy.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link: