Welcome to Bankruptcy Guide
Chapter 13 Bankruptcy Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Credit Counseling as a Bankruptcy Alternative
from:Sometimes it is possible to seek a bankruptcy alternative through credit counseling. It is feasible to get deeply in a debt, but be able to avoid bankruptcy when certain conditions exist. First and foremost, if you earn enough income to pay your current monthly expenses and your debt payments, but have fallen behind because of high interest rates or a one-time financial emergency, then it might be possible to avoid bankruptcy. Also, if your secured debt such as your mortgage and car payments are current and it is the unsecured debt wreaking financial havoc, then credit counseling may be a good choice. There are plenty of other good reasons why you might consider seeking credit counseling.
You can find many different types of credit counseling agencies, nonprofits and for-profit businesses. You should be very careful about the company or agency you choose, because some of them charge high fees. That means a significant amount your monthly payment would go to pay fees and not your debt. The best place to start when looking for a reliable and experienced credit counselor is with a bankruptcy attorney.
You should meet with the bankruptcy attorney in order to determine if credit counseling is even the path you should pursue. Credit counseling is usually only suggested instead of bankruptcy when two conditions can be met. First, you have to be able to budget your money and adhere to a repayment plan. Second, you only need to get interest rates lowered on unsecured and maybe some of the secured debt in order to get your payments lowered.
Credit counseling involves listing all of your income and debts. You are assigned a counselor who then contacts each of your debtors. In most cases, high interest rates on credit cards can be reduced and the credit card companies agree to accept lower payments. In some cases, even secured debt payments can be lowered, because a company would rather not repossess personal property if at all possible. Normally though, only unsecured debt is included in the repayment plan. Once the counselor has obtained the new payment amounts, a total monthly sum payment is calculated which includes a fee. You then pay that one amount to the credit counseling agency which distributes the payments to the credit card companies or other debtors.
For many people, credit counseling offers a bankruptcy alternative. You are able to avoid filing a bankruptcy that remains on your credit records for 10 years. The credit management services are often able to negotiate lower interest rates so you can restore your financial health. It's always best to avoid bankruptcy if possible, but when you need to actually reduce your debt, rather than just the payments, then bankruptcy is the best solution.
A bankruptcy attorney can review your financial status and advise you as to the best course of action.
Chapter 13 Bankruptcy News
Bankruptcy claim survives against former Erie debt collector - GoErie.com
Bankruptcy claim survives against former Erie debt collector GoErie.com When he filed for Chapter 13 bankruptcy, or wage-earner's bankruptcy, in March 2011, Covatto valued his assets at $122991, listed liabilities of $272663 and proposed a plan in which he would repay his creditors $975 a month for two years. |
What's Cure for My Whopping Medical Bill? - Fox Business
What's Cure for My Whopping Medical Bill? Fox Business If you don't qualify for a Chapter 7, I suggest you determine which would cause less damage to your finances: filing a Chapter 13 bankruptcy or allowing the collector to garnish your wages. A creditor can garnish only a maximum of 25% of your income ... |
As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement ... - Firedoglake
As Predicted, Ally Bankruptcy Will Delay Loan Modifications, Settlement ... Firedoglake Unemployment caused the Westchester family to miss mortgage payments and seek Chapter 13 bankruptcy protection. Now they are in limbo, awaiting approval by the ResCap Chapter 11 judge. “Resolution is on hold,” said the family's lawyer, Linda Tirelli, ... Bank's no Ally for NY homeowners |
Chapter 13 Bankruptcy: Repaying Personal Debts - Go Banking Rates
 Go Banking Rates | Chapter 13 Bankruptcy: Repaying Personal Debts Go Banking Rates By GoBankingRates Staff The second most common form of personal bankruptcy, Chapter 13, is designed as a debt repayment plan for those people who have enough income to pay down their debts over time. Filing chapter 13 bankruptcy is often seen as an ... Bankruptcy does not prevent actions to collect assessments |
Advantage CCS is Proud to Offer a Telephone Bankruptcy Education Class for ... - PR Web (press release)
Advantage CCS is Proud to Offer a Telephone Bankruptcy Education Class for ... PR Web (press release) This law stipulates that consumers must receive credit counseling and bankruptcy education from an approved nonprofit credit counseling agency in order to discharge the bankruptcy case. The legislation covers both Chapter 7 and Chapter 13 bankruptcies. |