Don't Get Into a Chapter 7 Bankruptcy Just Yet, Other Options to Consider

You do not have to give up so easily

You do not have to give up so easily. Being deep in debt could be frustrating especially when you have collection people hounding you every day. There could be legal repercussions to letting this go on, by the way. So, you really have to take steps in order to get back to the good graces of your creditors in order to avoid further damage to your credit rating and your reputation. While it may look like the best solution to end all your debt problems, filing a Chapter 7 bankruptcy may not be all that you can do right now. You might have other options that will not have as much impact on your credit score or in your life in general. Stash away those Chapter 7 bankruptcy papers for a while and check out your other options. There are several of them to look at and evaluate depending on your priorities and financial situation. Among these are debt settlement and debt consolidation.

If you are having problems making your monthly payments, debt settlement is for you. Most credit card companies would be willing to negotiate with those who have three to four months in arrearages in their accounts. Not all creditors would be willing to settle. So, you have to consider this carefully. You have to find a good debt settlement expert to give you advice on how to go about clearing out your debt obligations without resorting to a Chapter 7 bankruptcy filing. Be careful when your debt settlement expert advices you to stop payments on your loan accounts altogether and wait for the collection efforts of your creditors to kick in. You might get into more problems this way as there are already documented lawsuits involving debt settlement companies and creditors. It is easy enough to validate the information that you get with the loads of reliable websites nowadays. Being able to clear out your debt successfully through debt settlement instead of a Chapter 7 bankruptcy is a great way to save on the money that you will have to pay your creditors. This is definitely a better option to debt consolidation where you pay off several loan accountabilities using one consolidated loan that has a lower interest rate and a longer tenor. In the long-run, however, you will find that the total amount of your repayments is actually more that what you originally had to pay.

Don't Get Into a Chapter 7 Bankruptcy Just Yet, Other Options to Consider

By: Herschel Bentley

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