Credit Counseling vs. Bankruptcy
Read this clearly: These companies are worse than bankruptcy!
Credit counseling or credit consolidation companies are owned by banks. They promise to lower all of your bills into one payment. They then deduct this payment from your bank account each month. The idea is very similar to a Chapter 13 payment plan.
However, what they fail to mention is that your credit will remain poor until they are paid in full. In addition, they can do nothing to stop foreclosure, repossessions, garnishments, evictions, etc.
Contrast that with bankruptcy protection. Once you file you'll have an immediate "stay" that stops your creditor's cold. All of the harassing phone calls stop. Evictions, foreclosures, and repossessions are stopped as well. To top it off – your credit will begin to improve immediately after a bankruptcy!
With a credit consolidation company on your credit report you will be unable to obtain new credit until they're paid off. That's usually five years or more. With bankruptcy protection all of your debts are gone almost immediately (with Chapter 7).
The bankruptcy will be reported on your credit report – that's a good thing. A bank would rather lend money to a person who has no debt rather than someone who is paying off a mountain of it. This is one of the reasons it's easier for people to get credit after a bankruptcy.
Look at this as just starting from scratch and building everything back up. It's a big step to take and a huge change in your life. One thing is for sure, once you make that commitment to recharging your life into the new you of financial stability everything seems to fall into place and you can really set bigger goals again. Conatct our offices today or fill out an evaluation form so we can get to know you and your circumstances. This should be an adventure not a struggle.
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Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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Sometimes when debt piles up and our decisions are not straight forward we may need help. Sometimes asking for that help or knowing when to ask maybe a hard as anything in life. Bankruptcy to some can be a very difficult time in their lives... It's also the most liberating time when someone can actually breathe again after wiping away their debt. The process may be hard at times but well worth it to others...
After facing a foreclosure and losing your home what options do you have? Filing bankruptcy can be one of the toughest decision you could make in a lifetime. However life after bankruptcy scares most people away from even filing for bankruptcy.
Bankruptcy can be a fearful thought and process for most. But for some it can be that chance to admit failure and move forward into success. Bankruptcy can also be a crossroads into either failure or success and it's what you make of it that determines your outcome.
Individuals who reside, have a place of business, or own property in the United States may file for bankruptcy in a federal court under Chapter 7 ("straight bankruptcy", or liquidation). Chapter 7, as with other bankruptcy chapters, is not available to individuals who have had bankruptcy cases dismissed within the prior 180 days under specified circumstances. In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Most liens, however (such as real estat...
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