Don't Let A Chapter 13 Bankruptcy Filing Ruin Your Credit, Find Other Debt Relief Options

Filing for a Chapter 13 bankruptcy is not the only recourse you have when you are deep in debt

. While a Chapter 13 bankruptcy would allow you to keep some of your assets and would give you a good plan to pay off your debt accountabilities, this debt relief option would damage your credit score significantly. This could have dire implications on your future credit and even on your job security and opportunities later on. You do not want to have to suffer from any more financial troubles. It would be wise to look for other debt relief options to prevent this from happening. Fortunately for you, there are several options you can consider to get out of debt or to manage your debt. You can look at a loan modification for your mortgage, a loan consolidation for your unsecured credit, or a debt settlement plan. The most palatable of these debt relief options is a debt settlement plan. While this option would require you to have a debt repayment fund available to pay your creditors, you do not have to pay as much when you go for debt settlement as when you choose to restructure or consolidate your existing loans.

When you go for debt settlement instead of a Chapter 13 bankruptcy filing, you negotiate to pay your creditors an amount that is less than what you actually owe them. This largely depends on how much you have and how willing your creditors are to settle for what you can afford. You can shave about 25% to 60% off your existing loan balance with a debt settlement plan. Once your creditor agrees to a settlement amount, however, you should be ready to pay the amount in full or in installments for the next three to six months. This is actually similar to a Chapter 13 bankruptcy filing only without the negative impact on your credit score. It is often recommended that you hire a debt settlement consultant to do the negotiating for you. This is because these consultants have the expertise and are able to get better deals since they negotiate your settlement along with others like yours in bulk. It is important, though, that you choose to hire a reputable and reliable debt settlement consultant so that you are sure that your financial welfare is top priority. Like any other financial dealings, there are a lot of scammers in debt settlement. You do not want to fall prey to scheming posers who are out to take advantage of your predicament.

Don't Let A Chapter 13 Bankruptcy Filing Ruin Your Credit, Find Other Debt Relief Options

By: Herschel Bentley

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