Let’s Learn the Basics of Debt Consolidation and Bankruptcy

When it comes to fighting debt, people rarely think about bankruptcy.  They simply don’t appreciate the idea of filing for this legal procedure.many different credit cardsIf you aren’t aware of what to do with your multiple loans, then debt consolidation would be a nice option.  By simply combining your debts into one solid entity, you’ll monitor your repays much easier.  Furthermore, one payment will become available to you.

Nevertheless, we should go back to bankruptcy, no matter what you think about it. It’s because it’s not a bad option at all.  For many people bankruptcy is a good alternative to debt consolidation, and most likely it can be applied to your current financial position.  However, before you make your final decision, you require checking out your overall credit score as well as your negative items, including late payments.  Thus, you’ll precisely assess the extent of your debt.

Once you complete your debt analysis, you can get down to calculating your overall debt and comparing it with your income.  If this comparison is quite gloomy, then you won’t benefit from debt consolidation.  Only filing for bankruptcy can help you in this case.

As follows from the chapter 13, you can derive almost the same benefits from debt consolidation and bankruptcy.  Though one monthly payment looks quite attractive, you’ll be provided with impressive legal protections if you opt for bankruptcy.  I think that Law Offices of Jan Perry Lederer will suit you.

Those folks who have already faced bad credit know for sure how cruel collectors can be.  These cunning beings are used to flooding borrowers’ mailboxes and keeping their phones ringing from morning until night.  Fortunately, you won’t face this nightmare if you choose bankruptcy.  In this case you will be protected by a so called automatic stay.  By the way, debt consolidation doesn’t ensure protection against debt collectors.

You should clearly realize that debt consolidation will only give you a considerable financial relief, but bankruptcy can easily discharge your debt. I want to add that the Chapter 13 suggests paying only 10% of unsecured debts if certain qualifications are at hand.

It’s clear that acting on your own would be a foolish thing in this case.  You should hide behind your attorney’s expertise and experience.  Trusting someone’s professional leadership is undoubtedly more advantageous than pretending to be a financial genius.  A good bankruptcy attorney already knows what to do with your debt and he or she is interested in demonstrating his or her professional qualities.

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Posted by on Nov 2 2013. Filed under Legal. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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