Monthly Archives: May 2019

Debts and Bankruptcy

Recommendations to manage your debts and how to declare bankruptcy.

 

Debts and bankruptcy

Debts and bankruptcy

Almost all people have some type of manageable debt, whether by using a credit card, paying for higher education or buying a house, a car or another valuable object.

However, in some cases, debts can become a problem. Sometimes this happens because the person has borrowed more than he could afford and in other cases because he has lost his source of income.

If you are going through a difficult financial situation and feel that the debts are out of control, you better not ignore the problem or let your debt accumulate further. Find more information about:  

  • Recommendations to follow. Know how to set up a budget, communicate and organize a payment plan with creditors.
  • Advisory services. Consult the services of reputable credit counseling organizations. These entities can advise you on how to manage your money and manage your debts. In addition, they can help you develop a budget and offer you free educational materials and workshops.
  • Rules for debt collection. Learn what debt collector practices are prohibited by the Fair Debt Practices Act.
  • Stay alert. In your effort to recover your creditworthiness, take precautions in the face of advertisements that offer quick solutions.
  • Bankruptcy or personal bankruptcy. Find out about the requirements you must meet before filing for bankruptcy. You must receive credit counseling prior to the bankruptcy application and participate in an educational session after submitting the application. 

 

Debt Consolidation

Debt Consolidation

By consolidating your debts you simplify the payment of all of them through a monthly payment. This is a good option if you are facing the payment of many debts and have difficulty paying them. Before deciding on this alternative, consult the National Foundation for Credit Counseling  and a credit counselor .  

You can lower the cost of your credit by consolidating your debts through a second mortgage or a home equity line of credit. However, this strategy involves certain risks. For example: by putting your home as collateral, if you cannot meet or are late with payments, you could lose it.

Debt consolidation loans have costs. In addition to interest, you may have to pay “points,” one point equals one percent of the amount you borrow. This type of loan can offer you certain tax advantages that other types of credit do not offer.

 

Bankruptcy Statement

Bankruptcy

Filing for bankruptcy has long-term and far-reaching consequences. Bankruptcy information is recorded on a credit report for a period of 10 years, which can cause you difficulties in obtaining a loan, buying a house, or getting a job.

However, it is a legal procedure that offers you the opportunity to restart if you cannot cope with the payment of your debts and have exhausted all previous resources.

Before filing for bankruptcy,  inform yourself about the requirements you must meet. You must receive credit counseling prior to the bankruptcy application and participate in an educational session after submitting the application.   

Stay alert and avoid fraud and scams .

Pros and Cons of Personal Bankruptcy

A bankruptcy filing is a legal process that allows you to have certain debt cancellations by a court order. This means that you do not owe money from private accounts. It is as if debts never existed.

 

There are two types of bankruptcy

bankruptcy

Normally there are only two types of bankruptcy. Chapter 7 and Chapter 13. If the amount of the debt is so disproportionate in relation to your current and anticipated income, you may want to consult with a lawyer to help you understand your legal options so you can determine. If bankruptcy is a viable option for you.

While making your decision, you should be aware that there are some disadvantages when applying for bankruptcy:

• Personal bankruptcy is maintained on your credit report for 10 years.

• Sometimes bankruptcy information can be provided by the rest, such as when you try to apply for a mortgage or other types of loans for more than $ 50,000.

• Often bankruptcy is not looked upon by potential lenders and creditors. The concern may persist about your ability and willingness to pay your loan totals regularly.

 

An Alternative to Bankruptcy

An Alternative to Bankruptcy

Joining a debt management program can be an effective alternative. Here at DebtBankruptcy Helpers, we can help you.

DBH is a non-profit organization designed to serve consumers like you who are in debt and would like to avoid bankruptcy. When you join the DBH program, you will get low-interest rates, lower monthly payments, and a functional financial plan to help you be debt-free. DBH is licensed in different states of the country. We are registered in the BSI and accredited by ISO.

DBH is committed to helping you help yourself. Most of our clients can avoid the sting of bankruptcy and enjoy a debt-free life.

Need help? Contact us now!