Bearing in mind that consumer debt is at an all time high. Being in a huge debt can feel overwhelming. Many people have looked to the internet for a source of consolation and have seen advertisements touting debt relief as a quick fix. As tempting as these ads may seem. It is crucial to be on the lookout for the validity of the claim.
A good piece of these promises are a quick fix, but that quick fix might be bankruptcy. Yes, bankruptcy is one way to deal with your financial problems, but in most cases it should be a last resort. The fact that you filed for bankruptcy stays on your credit report for ten years. Which means that your prospect of getting a place to live, credit or employment or insurance are significantly lowered. Although it might be a quick fix, long term it can really hurt you.
It is always a fine idea to think about other options before making the decision to file for bankruptcy. Converse with your creditors. Plenty of times a payment plan can be worked out that is modified or can be paid in installments. Credit counseling services can work with you and your creditors to make debt repayment plans. Which can in the end help you get rid of your debt.
When you are taking into consideration a second mortgage, be careful. These loans expect your home as collateral. Bankruptcy can halt foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep specific assets. However, personal bankruptcy does not usually take away child support, fines, taxes, alimony and in a few occasions student loans.
It won?t normally let you keep your property if your creditor has a security lien or mortgage that has not been paid yet. A somewhat recent twist in bankruptcy laws creates certain hurdles that you must overcome before you can even file for bankruptcy, no matter what type of bankruptcy. First, you must get credit counseling from an organization recommended by the government within six months before filling. Additionally, in certain cases you have to pass a test that requires that you corroborate that your income doesn?t exceed a certain amount. These are all done to confirm that your making a certain amount of money.
Hire Rapid Recovery Solutions as your collection company today. For information on any type of debt including commercial debt collection, call RRS now!. This article, Credit Counseling and How It Can Help has free reprint rights.
Source: http://finance.redbright.co.za/credit-counseling-and-how-it-can-help/
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