subject: What Options And Alternatives Do I Have Regarding My Debt In Houston Texas Regarding Bankruptcy? [print this page] If you are having trouble paying your bills, you can take control of your debts now! We offer no hassle consultation that will give you all of your alternatives regarding your unique financial situation. We do not work for bill collectors or credit card companies. We represent families and individuals like you. My firm has helped thousands of families and small businesses with the same problems you are facing right now. You need to have an open mind to explore all of your options for yourself and for your family.
The First Priority is to get your finances under control. You need to work out the best strategy for your specific situation. Do not be controlled by what you think will look good on your credit report. Most of us get our information about credit and debt from biased sources like card companies, bill collectors, and the media. In most cases, we get information from family members and friends that are well intentioned but are uninformed, or have incorrect information.
Your credit is determined by a number of things. It is not enough to be current on your credit cards to have good credit. We have always been told that if you pay all of your bills and credit cards then you have good credit. This is not true. The question that any banker wants to know is how much money do you have left at the end of the month after you pay all of your living expenses and credit card bills. If you have no money left, then you have what is called a negative debt ratio and no bank will loan you money. You do not have to believe me, go ask your banker. Ask for a personal loan and find out what he or she says. Why wont they loan you any money? Because you have no money left to pay for any additional monthly payments.
Your first option is to borrow money from family and friends. I seldom recommend this option because if you are having trouble paying bills you may not be able to pay back the loan and you might injure valuable personal relationships.
Your second option is to go to a bank for a loan. Banks look at two things. First, you have to be current on all of your credit cards and bills and you have to have money left at the end of the month to afford another loan payment. In most cases this option is not available.
A third option is to use a bill consolidation service. Most of these services advertise as being non-profit organizations and state that they are a free service. This should concern you, as all companies have to pay rent and salaries. However, it sounds good and many people choose this option. In some cases they are able to combine your credit cards into one payment and may reduce the interest. They can only help with credit card companies and some credit card companies will not agree to the arrangement. With a bill consolidation service, you pay a monthly payment based on what you have left at the end of the month and it all goes toward the credit cards. The consolidation service gets a percentage of what you pay from the credit card companies. You pay the full amount of the debt, and in most cases it takes five years to pay off the debt. During this time you have no money left at the end of the money, no money for emergencies, you have negative credit the entire time and you cannot start rebuilding credit until after you pay the debt in full.
A fourth option is to consider using federal law to help with your debt problems. In most cases you can eliminate debt and start rebuilding credit after only four month instead of four to six years. The responsible use of the federal bankruptcy laws can allow you some much-needed breathing room and a fresh start on our financial matters. Actually, filing under the bankruptcy code can be the first step in re-establishing your credit!
What do you mean? Ive heard a bankruptcy case stays on my credit report for ten years! true, although most credit bureaus remove a bill consolidation bankruptcy after six years. Other negative information stays on the report for seven years, so thats not better, and if you do not do something, your credit report just keeps getting worse and worse. The fact is a bankruptcy or debt consolidation bankruptcy provides a CUT OFF POINT for a FRESH START (once you set a discharge, you balance on the debts discharged should be-0-zeroed out). You can get credit right away after a bankruptcy case. All you have to do is follow the steps in this handout and you can rebuild credit fast.
There are two types of bankruptcy cases available. Straight bankruptcy, chapter 7, & and debt consolidation bankruptcy, chapter 13.
So for the moment, read my lips! FORGET CREDIT!! Focus on getting back on your feet financially. Credit problems begin with denial of the problem. You may have a credit problem if
You cannot afford the minimum monthly payment on your bills.
You only send in minimum monthly payment on your bills.
You dont have a budget worked out.
You have recently been turned down for credit or a loan.
Your creditors keep calling you for payment.
You carry a balance on your gas card.
You carry a balance on your department store cards.
You dont have two months living expenses in the bank.
For more information visit me on the web at www.busby-lee.com or call me at (713) 974-1151
