Are there any options to bankruptcy? - bankruptcy questions

Are there any options to bankruptcy? If you are in over your head with debt and can't see the light at the end of the tunnel, you may want to consider filing a bankruptcy. Bankruptcy is a legal way to get a fresh start on life when things aren't going to well. There are consequences to filing a bankruptcy. A BK can stay on your credit report for up to ten years and you will probably pay more in interest for consumer purchases if you can even get credit at all.

What If I don't want to file for bankruptcy? Are there any other options to bankruptcy?

One of the few options to a BK is debt negotiation. I will tell you that you will need to put your time in. Debt negotiation is a process and you will need to be patient. Your creditors may not be willing to back off until they are paid. If you are willing to play the game you can save yourself a lot of money by doing a debt settlement program. Most consumers save anywhere from 40-60 cents on the dollar without any long term negative effects on their credit report.

How do I start a debt negotiation program?

Should I do credit counseling?

Should I do credit counseling? If you just want to lower your interest rates on your credit cards and you are in good financial condition, the answer is no. Joining a credit counseling program should only be if you are experiencing a financial crisis. You may be over the limit or have rolling late payments and are getting saddled with late fees and over the limit fees. Once you start this cycle, your creditors will raise your interest rates that are commensurate with the universal default rate that is in your credit contract. Once you start a cccs program the creditors will stop the over limit and late fees. You will also be given lower interest rates. The rates will depend on the creditor. They are all different. I like Bank of America in general. If you do join a credit counseling program, they lower their rates to 0%. Other credit card companies can be across the board when it comes to rates.

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What is the statute of limitation on credit card debt?

What is the statute of limitation on credit card debt? The statute of limitation limits the amount of time that a creditor is allowed to collect from you. In most states it is a period of 7 years that a creditor has to collect repayment from you. If the collection account is off of your credit report and the statute of limitation has been full filled, you should be home free. I recommend that you seek legal advice in your state to find out what the rules are. I would also recommend speaking with a lawyer regarding debt settlement and collection law.

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What is bad debt?

What is bad debt? Bad debt to a company that is lending money, is money that is owed and not being collected. People who borrow money for various reason just stop paying. They may have lost a job, divorce or even a death in the family will halt a persons ability to repay a debt. A company when declaring it a bad debt, no longer has to count it as a receivable and they are able to write off the loss on their taxes.

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New bankruptcy law

Filing bk is an important decision to make. The impact of this decision will have great ramifications on the rest of your life. George Bush definitely stuck it to the people when he passed the new bankruptcy law in 2005. The new law was supposedly supposed to cut down on bk fraud and reduce abuse. If was a huge gift to the credit card companies. It made it a lot tougher for people to file for bankruptcy. There is no right way to decide whether you should file bankruptcy or not.

Alternative to Bankruptcy

What is a Section 341 meeting?

The section 341 meeting which is also call a meeting of the creditors, is a meeting that a debtor must attend afer a bankruptcy is filed. The meeting is orchestrated by the case trustee or the U.S. trustee. The debtor must go to this meeting and testify about his or her financial condition. The debtor will be asked about this information that has been placed on the bk paperwork. A creditor is allowed to attend the meeting and ask questions about the financial condition of the debtor as well. If the debtor fails to show up to the meeting, the bankruptcy case can be dismissed. Most states allow you to attend the section 341 meeting without an attorney. Massachusettes requires that you have an attorney. You are going to have to pay for this. There is no way around it.

Like all legal matters, consult with an attorney first before making any financial or legal decisions.

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What does BK mean?

BK is short for bankruptcy. It is a widely used acronym in the United States culture for the term bankruptcy. Not much more to say about this one.

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Should I stop paying my credit cards?

If you are considering debt negotiation and your are still current on your credit cards, technically you can't do it. You are still contractually obligated to pay your bills back. Be wary of the debt negotiation firm that just outright tells you to stop paying your bills and join the program. A debt settlement company that is operating within the limits of the law wont tell you to do that. The only person that can make the determination to stop paying your bills is you. Debt negotiation is only for hardship and not because you spent to much and don't feel like paying it back. What it is for is an alternative to a bankruptcy.

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Tips for Debt Relief

There are many ways to get out of debt. In the heat of the battle options are not always obvious. This article lists some effective ways to manage your current credit accounts or obtain new ones. Getting out of debt is tough, but it does not have to be painful. Debt Negotiation, debt consolidation and debt settlement are great options. Knowing the right debt option to pick can be hard. These tips will definitely make your debt free journey much easier.

Aternatives to Bankruptcy

Debt consolidation loan – Things to think about when deciding

There are many ways to get out of debt. One option that is only available to a homeowner is a home equity loan or line of credit. This article is written from the perspective of a homeowner. For a renter, an equivalent debt consolidation loan would be a personal loan from a friend or family member or even a consumer finance company. Remember that a debt consolidation loan is still a debt. Like any debt it must be chosen wisely.

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5 Old-Fashioned Ways of Digging Yourself Out of Debt

In some respects, digging out of debt is not so glamorous. We have grown to love our modern conveniences, but these things have taken their toll on our pockets. For most of us, solving our debt problems requires no secrets, perhaps only some common sense and a reminder of what some of these conveniences cost us. Life does have a way of training us. Hopefully we can learn from our past mistakes that we have made with our money.

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How do debt negotiation companies make money?

The dumb answer is debt negotiation companies make money by settling debts. A good firm will make a percentage of what they save you rather than a flat fee. The savings rate percentage can be anywhere from 15-25 percent of what they save you. I like that they have an incentive like this. The more they save you, the more money they make. This way you know that they will do their best to negotiate a good deal for you. Most firms charge you an up front fee which can be paid over a period of a few months. Most companies realize that you are having a hardship, this is the business that they are in. Typically you can be in a program up to 36 months that will have you totally out of debt.

Additional Articles on Debt Negotiation

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Debt Negotiation is an alternative to Bankruptcy

Many Americans are finding themselves in financial trouble with the credit crunch tightening its grip on the country. You can settle your debt through a negotiation company for 40-60 cents on the dollar. Doing a debt negotiation program has no adverse effect on your credit like a bk would.

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