Credit RX USA
Contact Us
Free no obligation debt consultation today!
Name
State
Email
Phone
Total Debt
Joomla Professional Work
 

 

 

chart2

 

Credit RX USA

letus_img1

 

Bankruptcy:

Most people in debt consider bankruptcy, but usually they don't understand the consequences of this huge decision until it is too late.

A person faced with enormous debt will immediately consider filing for bankruptcy because that is the easiest and most common thing to do. Legislation gives a person the choice of filing for either a Chapter 7 or a Chapter 13. For as little as $500 a person can walk into a bankruptcy attorney’s office and file. What few people realize is that the negative impact of bankruptcy will never leave your credit reports.

A Chapter 7 can be reported for 10 years, and a Chapter 13 for 7 years. And that is just the bankruptcy itself. Although the debts you include in your plan may be reported as "discharged in bankruptcy", they may continue to be visible to anyone checking your credit. Bankruptcy will remain on your personal record for life. Whenever you apply for a job asking whether you have filed you must let your employer know. This is just many reasons why debt settlement is a better alternative to bankruptcy.

Like any other option, there are good and bad sides to bankruptcy. However, this particular choice offers many more negative effects than positive.

The pros of bankruptcy:

1.    May halt any legal actions being taken by your creditors, including foreclosure, repossession or garnishment..

2.    Legal action will also be averted, because the responsibility of paying off your debts will be transferred to a trustee who will be selling off your assets to pay for your debts.

The cons are numerous:

1.    You still have to make payments! New legislature requires you to make payments back to the creditors

2.    Even if you file bankruptcy you are still expected to stay current on your home and vehicle, otherwise you can lose these assets.


3.    Your filing for bankruptcy will be part of public records from between seven to ten years. That’s a long time especially for young couples who are just starting out. It may be difficult to recover from such a long period of time.

4.    Bankruptcy can also affect your employment. Sensitive positions and the like may not be available to you anymore.

5.    Bankruptcy will not address overspending and a hundred little wrong practices that led to this point.


Unscrupulous bankruptcy lawyers

Many bankruptcy lawyers might underplay the actual gravity of the situation so they can make money; this is another negative impact of bankruptcy.  Be careful of people who take advantage of people in immense need. Information and sound financial planning and advice will always be your ally in making the right decisions.

U.S. legislation has recently passed a bill that will make it more difficult for many people from filing chapter 7 bankruptcy and completely wiping out all there debt. The state laws are no longer on the consumers’ side, so it’s high time that sound financial advice be used to counteract shutting down of options for debt ridden public.

Weight all your decisions very carefully and consider not only the present circumstances but also what you would be five to ten years after you’ve made the decision. Never do things just because everyone else is doing it- because regret will come in the end, and the effect is no longer reversible.

Debt settlement is a better alternative to bankruptcy.

Debt settlement or debt negotiation is a process where an individual puts money away each month for eventual payment to creditors. Debt negotiators typically are able to help clients get out of their current unsecured debt for around 55% of the total balance and have them totally debt free in 12 to 36 months.

For example, a person with $20,000 in credit card debt will pay around $60,000.00 over a period of 15 to 20 years if they make normal payments, and that's IF they never use the cards again!  With a certified debt settlement program that same person can become totally debt free for around $11,000.00 in 12 to 36 months, and generally for a lower monthly payment than they're making now!  

As you can see a debt reduction program can literally save you and your family thousands of dollars without the lifelong negative effects of bankruptcy.