Free debt




Free Debt Consolidation

We provide free consumer credit counseling and debt management services for people overwhelmed with credit card debt. 

The Alternatives

You have several options when it comes to dealing with debt. 

Debt consolidation loan

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.

Doing nothing

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.  

Debt 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.

Straight bankruptcy

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

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 today. 

It all starts with a free debt consolidation evaluation.



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