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      May 22, 2018

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Related Articles

Benefits of Debt Settlement

Debt Consolidation vs Debt Settlement

Debt Relief vs Bankruptcy

Pitfalls of Declaring Bankruptcy

Reasons for Debt Consolidation

The Bankruptcy Process Explained

What Is Debt Consolidation?

What Is Debt Negotiation?

What Is Debt Settlement?

What To Do if You're In Debt

 

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The Bankruptcy Process Explained

All it takes is one lost job, one serious medical condition or one unforeseen tragedy to plunge someone into the depths of debt.

Figures provided by the United States Census Bureau indicate that over 1.5 million Americans file for bankruptcy each year. Of those who file, over 60 percent of them have found themselves in dire financial straits due to medical bills.

Consumers have a variety of options available to them when they reach a point where their debt is weighing them down.

Debt negotiation, debt consolidation and debt settlement are a few of the solutions consumers may be exposed to if they listen to the many ads on the television and radio for debt solutions. Debt solution companies are a dime a dozen in this country. A simple search of the internet will turn up more choices than a consumer can reasonably sort through.

And not all debt solution companies are created equal. Most for-profit agencies make promises they have no intention of keeping, which ends up costing a consumer even more money than they already owe. There are a few non-profit agencies which are able to help and do not charge consumers for their services. So if you are one of the 69 percent of Americans who are swimming in debt, a non-profit credit counseling agency would be a good place to start.

For some consumers, their amassed debt may be so great that they need to resort to what should always be the final solution for ridding oneself of debt – bankruptcy.

There are two classifications of bankruptcy in the United States: Chapter 13 and Chapter 7.

Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” allows a consumer to pay creditors either all of their debts, or a portion of what they owe. Consumers usually have a three to five year window by which to complete the repayment process. In Chapter 13 bankruptcy, the debtor gets to keep their assets because they have agreed to work out a repayment schedule for creditors.

In order to qualify for Chapter 13 bankruptcy, an individual must be able to prove that they earn enough money to be able to repay their creditors during the length of the repayment process. Those who cannot prove they have enough income to do so will not be permitted to file for Chapter 13 bankruptcy.

The other kind of bankruptcy is known as Chapter 7, which involves full liquidation of a consumer’s assets in order to repay their debts. All or some of a person’s property may be sold in order to settle their debts. Some property, such as clothing, vehicles and furniture, is considered exempt and cannot be liquidated during Chapter 7 bankruptcy.

Prior to being able to file for either Chapter 13 or Chapter 7 bankruptcy, consumers must first complete credit counseling through a legitimate consumer credit counseling agency. Credit counseling agencies may be able to assist the consumer in repaying their debt without actually filing for bankruptcy. Only if the credit counselor determines that all other options have been exhausted will bankruptcy proceedings be permitted. As part of the counseling process, consumers will learn how to better manage their finances so they are not repeat filers for bankruptcy.

It is also important to note that those who successfully file for bankruptcy can expect it to have a negative effect on their credit report for seven to 10 years. It will lower your credit score, making it harder to secure new lines of credit. Debt consolidation and debt settlement are two options which consumers should consider before declaring bankruptcy. Finding a quality debt relief service that can tailor a financial plan to a customer’s needs should be pursued first.

Debt Consolidation Do's And Don'ts

Barry Choi has seen up close how quickly debt, especially revolving debt, can pile up. While his own finances are in order, the Toronto-based financial blogger has a friend who racked up $50,000 in debt - twice - outside of his mortgage and car loan.

Published:  Thu, 17 May 2018 06:42:00 GMT



Reasons Why America's Debt Load Has Soared Shared By National Debt Relief

The debt load of American consumers has been increasing year on year and National Debt Relief explains some of the reasons for it. The article titled "How America's Debt Load Has Soared" released May 16, 2018, aims to educate consumers more on why their ...

Published:  Sat, 19 May 2018 12:48:00 GMT



National Debt Relief Inks 95K-SF Deal for Relocation Within FiDi

National Debt Relief has signed a 95,000-square-foot lease at 180 Maiden Lane to relocate and expand its offices within the Financial District. The organization, which helps consumers get out of debt, will take the entire 29th, 30th and 31th floors of the ...

Published:  Thu, 17 May 2018 12:18:00 GMT



Where to Turn for Tax Debt Relief

You owe the government thousands of dollars in taxes, and you have no idea how you are going to pay them. You want to make an offer to the Internal Revenue Service to pay off back taxes and stop the letters. You've seen the ads on TV - pay the company ...

Published:  Fri, 18 May 2018 04:16:00 GMT



Debt Giant: The Leading Source in Debt Relief!

Do you have bad credit Need help repairing low credit rates Well, we are the giant of debt relief resources! Cutting Debt out of your life is what we do! We will help you alleviate some of that stress that comes with credit repair. We are one of the ...

Published:  Mon, 30 Apr 2018 09:17:00 GMT



Inexpensive Road Trip Ideas for Memorial Day Shared by National Debt Relief

Cheap road trips might be hard to come by especially during Memorial Day but National Debt Relief shares some tips to make the trip fun and inexpensive as well. The article titled "Cheap Road Trip Ideas To Make Your Memorial Day Fun" released May 14, 2018 ...

Published:  Thu, 17 May 2018 10:58:00 GMT



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