Best Debt Relief Programs
      June 17, 2019

Home  >  Debt Relief  >  Articles


Debt Relief

  1. CuraDebt
  2. LendingTree
  3. CareOne
  4. LendingClub
  5. American Debt Enders
  6. Accredited
  7. OneMain Financial
  8. Savvy Money
  9. Franklin Debt Relief
  10. Debt Consolidation Care
  11. Fast Track Debt Relief

Your Information Is Secure
60+ Ways to Save Money Newsletter

Latest Reviews

Cruise Vacations

Fruit Baskets

Government Grants

Learn to Read Programs

Menopause Relief

Online Fitness

Paid Surveys

Personal Trainers

Pet Meds



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


Top Consumer Reviews Articles provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

Pitfalls of Declaring Bankruptcy

When all other options have failed, those who are mired with extensive financial debts may find themselves facing the option of declaring bankruptcy.

There are two kinds of bankruptcy for which Americans are able to file: Chapter 13 and Chapter 7.

Chapter 13 bankruptcy, also known as “reorganization bankruptcy,” is designed to allow consumers to repay creditors in full or in part. Consumers are given a three to five year window to repay their debts according to the terms of the bankruptcy agreement. Chapter 13 bankruptcy allows the debtor to keep their assets because they have agreed to work out a repayment schedule for creditors.

Qualifying for Chapter 13 bankruptcy involves an individual’s ability to prove they earn enough money to be able to repay their creditors during the length of the repayment process. If a debtor is unable to prove financial ability to repay, they will not be permitted to file under Chapter 13.

The other kind of bankruptcy is known as Chapter 7, which involves all or some of a person’s property being 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.

There are some pitfalls to filing for bankruptcy that should be considered prior to making the move.

The most serious pitfall is that it will negatively affect one’s credit report for 7 to 10 years. It can lower one’s credit score, which will make it incredibly difficult to secure new lines of credit, including credit cards and loans.

Filing for bankruptcy also can affect a person’s ability to secure future employment. In today’s employment environment, prospective employers have made it routine practice to conduct full background checks on candidates for hire – which includes a copy of one’s credit report. Over 80 percent of employers who were polled in 2012 said they use background checks and financial reports as a factor in the hiring process.

Those who have spotty financial histories are less likely to be hired than their more financially-secure counterparts.

Another hidden disadvantage to filing for bankruptcy is that the state and federal governments may not be required to provide tax refunds annually. Any money that may have been refunded could be garnished in order to pay creditors.

Those who have successfully filed for bankruptcy also can expect to pay higher interest rates for credit cards and other loans – if they are even able to secure them. Like consumers who have bad credit and low credit scores, those who have filed for bankruptcy can expect to be subjected to outrageously high interest rates for the duration of their bankruptcy and sometimes even a few years beyond it.

Another serious disadvantage to bankruptcy is that it may not clear all debt that is owed. Even in the case of Chapter 7 bankruptcy – when a debtor’s assets have been liquidated in order to pay creditors – some debt will remain exempt from the bankruptcy process. The holders of that debt may come back on the consumer for repayment of the full amount owed.

While there are both advantages and disadvantages to filing for bankruptcy, consumers must evaluate their individual circumstances and then determine which outweighs the other before making the decision to file. Thankfully, there are other options, such as debt consolidation and debt settlement, which can help a consumer much better than declaring bankruptcy. A knowledgeable debt relief company can guide consumers through which option is best for them.

Forget these 5 myths you've heard about debt consolidation

If debt is affecting your finances, you may have a share of the $4 trillion in non-housing debt tallied in the first quarter of 2019 by the Federal Reserve Bank of New York. Of all household debt, ...

Published:  Tue, 11 Jun 2019 05:09:00 GMT

Texas AG announces $13M in debt relief for ITT Tech students

AUSTIN, Texas - On Friday, Attorney General Ken Paxton announced a $13 million debt relief agreement for 1,430 former ITT Tech students in Texas. The agreement is part of a 43-state settlement with ...

Published:  Fri, 14 Jun 2019 19:03:00 GMT

Former ITT Tech students in Arizona will get nearly $4M in debt relief

Former ITT Tech students in Arizona will get nearly $4M in debt relief About 400 former ITT Technical Institute students in Arizona will get nearly $4 million in debt relief. Check out this story on ...

Published:  Fri, 14 Jun 2019 17:14:00 GMT

Iowa's former ITT Tech students to share $1.4 million in debt relief

Nearly $1.4 million in debt relief is on its way for 143 former ITT Tech students in Iowa as part of a 44-state settlement, Attorney General Tom Miller announced Friday. The settlement with Student CU ...

Published:  Fri, 14 Jun 2019 13:29:00 GMT

Nearly $1.7M awarded to Coloradans with student loan debt after ITT Tech settlement

Colorado Attorney General Phil Weiser announced Friday that his office secured $1,668,772 in debt relief for the 168 Coloradans impacted, according to a news release. Nationwide, more than $168 ...

Published:  Sun, 16 Jun 2019 14:03:00 GMT

ITT students to receive millions in debt relief in settlement

Former ITT Tech students who owed money in student loans will get a break due to a settlement in Arizona and 42 other states. ...

Published:  Fri, 14 Jun 2019 22:20:00 GMT

4 Ways to Become Debt-Free Faster

Finally, a third solution is a personal loan. While some loans are specifically marketed as debt consolidation loans, any personal loan will do, since you can use the proceeds for anything you'd like. ...

Published:  Sun, 16 Jun 2019 08:29:00 GMT

Share Us!    Share on Twitter Share on LinkedIn Share on Google+ Share on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure