Free Debt Consolidation
We provide free consumer credit counseling and debt management services for people overwhelmed with credit card debt.
You have several options when it comes to dealing with
You can try to get a debt consolidation loan but these loans
are usually based on your owning real estate and having
sufficient equity in it. it also requires you to pay very high
interest rates which is what put you in this situation in the
first place. This is very risky because you now drag your house
into your credit problems and risk foreclosure if you cannot pay
the new loan.
If you do nothing the problems only gets worse. For one, your
creditors can sue you and attach your wages. That will certainly
impose serious economic hardship in addition to its impact on
your credit. You can simply walk away and risk garnishment of wages,
repossessions and judgments
for years. It also means that the creditor harassment that you
are probably currently facing will not stop.
adjustment under Chapter 13
There are five types of bankruptcy, Chapter 7, 9, 11, 12 and
13. Chapter 7, also called liquidation, is the most common type
of bankruptcy that individuals file. It is extremely popular
because it provides for the absolute and complete elimination of
most types of debt, thereby giving the debtor a truly fresh
start. The goal of a Chapter 7 bankruptcy is to obtain a court
order discharging one's debts. Chapter 13 is the second most
popular type of bankruptcy and it involves paying back your
creditors under a court approved repayment plan. Chapter 11 is
specially suited for corporations seeking to reorganize their
debts while continuing to operate. Chapter 12 is for family
farmers and Chapter 9 is for cities and governmental bodies seeking
to reorganize their debts. Chances are that you will be filing a
Chapter 7 or Chapter 13 bankruptcy.
There are certain debt situations where a Chapter 7
bankruptcy is not in your best interest. In those situations,
you want some breathing room to catch up with your payments.
Chapter 13 is suited for those situations where you are best off
paying off your debts but you need more time than your creditors
will allow. Most people who file under Chapter 13 do so because
they have fallen behind on their mortgage payments and are
facing the possibility of foreclosure. In such situations, bankruptcy
law allows debtors up to three years to pay up the arrearage
while maintaining their regular payments. Let us say that you
were unemployed for six months and during that time you fee
behind on your house payments and the mortgage company has
demanded that you pay the $5,000 in back payment within 20 days
or else they will foreclose. Under a Chapter 13 bankruptcy, the
law allows you 36 months to pay off the $5,000 arrearage while
you keep up the regular monthly payments. Obviously, you need to
show evidence of sufficient income to pay both the regular
payments and the new plan payments.
As mentioned above, Chapter 7 of the bankruptcy code defines
a type of bankruptcy filing called liquidation. You file under
Chapter 7 if your debts are largely unsecured or if you want to
wipe out most of your debts and never repay them again. If your
debts are mostly loans or credit cards and judgments, you would
most likely want to file Chapter 7. Imagine that for six months
or more you are suffering terribly under the heavy burden of
debt and all of a sudden, all that load gets lifted off you and
you are a free person. One person likened it to being
declared not guilty after a long trial without bail. That is
what debtors report experiencing when they file Chapter 7 bankruptcy.
Chapter 7 bankruptcy laws are easy to understand and they
deal with the automatic stay, control of the bankruptcy estate,
property laws, amendments and the discharge of debts.
Debt consolidation is usually the best of all the options
because you avoid the stigma of bankruptcy while making one low
monthly payment that you can handle. We will contact your
creditors and get them to slash the balances on your account by
as much as 60% or more. We will also get them to agree to an
easy repayment plan. Other programs reduce your payments
but not your debt. We reduce both your payments and your debt.
Not only do we get your creditors to reduce the amount you owe,
we can get them to slash the high interest rates that you are
paying. Do you know that with today's high interest rates most
debtors will need 10 to 20 years to pay off their credit cards.
It is not that you borrowed too much. It is that you are being
charged too much. By getting your creditors to agree to
reduce your debts and monthly payments, it prevents them from
further damaging your credit. Without doing something, your
creditors will close your accounts and refer them to collection
and that in itself can devastate your credit. The result of debt
consolidation program is that you will save many thousands of
dollars and you will be spared the stigma of filing bankruptcy.
The best thing is that you can start this savings as soon as
It all starts with a free debt consolidation evaluation.
for a free debt consolidation analysis