An individual confronted with a financial hardship is certainly not a new scenario in the U.S., but most people aren?t familiar with all of the personal debt relief options available to them. Chances are, filing for bankruptcy is one of the few options they are familiar with. The topic of bankruptcy is prevalent in our society, but carries a heavy stigma. Scour the internet and you will find hundreds of blogs and articles presenting those who turn to bankruptcy for relief as weak in morality and simply looking for an easy way out. While it?s true plenty of people have abused bankruptcy, using it as a way to wipe out frivolous expenses, this is not always the case. Many simply find themselves in over their heads due to unforeseen circumstances, such as job loss, reduced income, etc., and just need to be educated about personal debt relief options.
Why Avoid Bankruptcy?
Regardless of the circumstances, filing for bankruptcy is not something to be taken lightly. The process is long, expensive, public in nature, and has a detrimental affect on your credit and lifestyle for about a decade ? and sometimes beyond. And that?s if you qualify. Under the new laws introduced in 2005, most are unable to file Chapter 7 and must settle for filing Chapter 13 (where your financial obligations must be paid in full). The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) makes it particularly difficult to qualify if your income is above the median income for your state and for a household of a certain size. Thus, in order to file for Chapter 7, one must meet several requirements:? Means Test, Median Income, and Counseling. The Means Test appraises your income as well as your living expenses to determine if you are financially able to make the necessary payments to your creditors. If it is decided your disposable income is adequate, you will likely be made to file Chapter 13 bankruptcy, rather than Chapter 7.
Let?s Talk Debt Settlement Programs:
So, what?s another option for those who either do not qualify for bankruptcy or do not wish to subject themselves to the lengthy and trying ordeal that the bankruptcy process entails? One particular option that continues to gain popularity is debt settlement. Debt settlement, which is sometimes referred to as debt negotiation or debt reduction, is just that. Debt settlement companies help individuals settle their debts for less than they owe by negotiating a reduced balance with creditors on their behalf. The process is simple and straightforward with the client making low monthly program payments, typically far less than minimum payments, into an account that they control. These funds are used solely to resolve your debt. Once a settlement is reached with a creditor, the debt is paid off with the savings from the account. And while debt settlement companies do charge a fee for their services, they only do so once you have settled an account for less than what you initially owed. If a company requests you pay fees up front, be very wary as they are likely not FTC compliant, nor ethical.
Consumers who choose to enroll in debt settlement programs typically rid themselves of their financial obligations, on average, within two to four years. By comparison, the process, cost, and stigma of bankruptcy will continue to affect your life for roughly a decade.
Deciding on a path to rid yourself of financial burdens is one of the biggest decisions you will ever make. For this reason, research is key. Consider the options, and take into account the timeframe you are willing and able to dedicate to shedding your debt. Be realistic about your goals, and look for a path that works for you. Most see bankruptcy as a last option, and for good reason. Between the various fees (court, lawyer, etc.), extensive time it takes to shed your financial burdens, and loss of assets, it?s easy to see why people would rather avoid bankruptcy.
If you are facing substantial debt and are struggling to keep up with your minimum payments, or have fallen behind, but want to avoid bankruptcy, debt settlement is likely the right course of action. The low monthly program payment, as well as the shorter program length can be incredibly encouraging to those suffering from financial struggles. If you are interested in learning more about how debt settlement can help you, contact the people at United Financial Relief. They have helped thousands of individuals just like you and their debt settlement program has settled over $1 billion in debt to date. Visit them online at www.unitedfinancialrelief.com, fill out a request for information form, and they?ll contact you at your convenience.
the stand josh mcdaniels cotton bowl wizards of waverly place cedric benson playoff schedule charles addams
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.