TopConsumerReviews.com
      June 21, 2018

Home  >  Debt Relief  >  Articles

Best

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

Business Cards

Company Incorporation

Fitness Clothing

Golf Clubs

Green Cards

Home Warranties

Medical Alert Systems

Personal Checks

Refrigerators

VPN Services

 

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

TopConsumerReviews.com 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.

Judge rejects DeVos' interpretation of order about Corinthian student debt relief

Tens of thousands of former Corinthian Colleges students can breathe a sigh of relief after a federal judge said late Tuesday that the U.S. Department of Education must stop all attempts to collect on their federal student loans. The decision clarifies the ...

Published:  Wed, 20 Jun 2018 11:31:00 GMT



Judge rejects DeVos's interpretation of order to halt partial student debt relief plan

Tens of thousands of former Corinthian Colleges students can breathe a sigh of relief after a federal judge said late Tuesday that the U.S. Department of Education must stop all attempts to collect on their federal student loans. The decision clarifies ...

Published:  Wed, 20 Jun 2018 09:02:00 GMT



Greece expects substantive debt relief decisions from Eurogroup

Greece expects euro zone finance ministers to deliver on promised debt relief this week so that it can at last plan its financial future "like any ordinary country", the government spokesman said on Wednesday. Load Error Ministers in the Eurogroup will ...

Published:  Wed, 20 Jun 2018 04:32:29 GMT



The Macedonia effect Deal may boost Greek debt relief hopes

ATHENS (Reuters) - With a brief formulation of words, Greek Prime Minister Alexis Tsipras may have boosted his chances of persuading foreign creditors to free his nation from years of financial humiliation on better terms than a few days ago. Tsipras ...

Published:  Mon, 18 Jun 2018 09:42:00 GMT



Greek Debt Talks: the Main Relief Measures Being Considered

Greek bailout talks are reaching the final stretch and creditors are debating what relief measures they can offer Europe's most-indebted state to ease its financial burden and facilitate its exit from the latest lifeline. Negotiations over the type, size ...

Published:  Sun, 17 Jun 2018 20:00:02 GMT



Increasingly Debt-Laden, Regulated Utility Sector Outlook Veers from "˜Stable' to "˜Negative'

Consolidated ratio of debt to earnings before interest ... One approach is to seek financial relief from regulators-which most companies have done in response to tax reform. The Florida Public Service Commission has allowed several utilities in the ...

Published:  Wed, 20 Jun 2018 04:22:00 GMT



Take a Debt Free Summer Vacation

vice president of Phoenix operations with Freedom Debt Relief. "Instead, plan ahead to ensure you spend smartly." Identify Ways to Reduce Expenses Once you've got a detailed budget outlined, it's time to start searching for ways to cut those costs ...

Published:  Mon, 18 Jun 2018 06:17:00 GMT



Share Us!    Share TopConsumerReviews.com on Twitter Share TopConsumerReviews.com on LinkedIn Share TopConsumerReviews.com on Google+ Share TopConsumerReviews.com on Pinterest

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure