Comprehensive debt relief
Bankruptcy is not on the list of positive 綜合債務舒緩 options for debt relief. Yes, it does offer immediate relief; however, the long term repercussions will need to be dealt with. To deter individuals from filing for bankruptcy, a number of alternative legal debt relief options were created. They provide convenience, the ability to fix a credit report slowly, and they are backed by government support. There are two main options for individuals looking to get out from under debt – consolidation and settlement.
Debt consolidation is a dependable method that, though it does not remove debt completely, it makes it more manageable. A debt relief counselor contacts all creditors and assists in negotiating a lower amount to pay back; this includes reducing the interest rate, and dropping certain charges, including late fees. Once negotiations are complete, debt is consolidated into one, affordable monthly payment made straight to the consolidator. They dispense the money to creditors. It takes an average of five years to clear debt.
The most popular relief form is debt settlement. There are currently many federal government policies to assist with settlement options. Debt is not completely wiped clean, but often fifty to seventy percent of the total amount is removed. A credit counselor discusses the situation with creditors and hammers out a new repayment plan and the various conditions and terms. It is the quickest way to solve debt, as it takes only one to three years.
One discussion with a debt specialist will aid them in determining what option best suits an individual’s personal needs. They assist in providing comprehensive debt relief. This way, individuals avoid bankruptcy and rebuild their credit standing.
As bankruptcy filings have increased seemingly exponentially over the last three years, many consumers are seeking bankruptcy advice from a new type of business that is capitalizing on people’s misfortune. These firms are essentially high-volume bankruptcy law practices and bankruptcy-petition preparers that may or may not understand the complex tax debt relief laws nor are providing comprehensive debt relief help.
This is not to say that there are those firms out there who are offering quality bankruptcy and debt relief services and advice that meets the needs of clients who are not able to pay higher fees of individual attorneys. After all, these clients are for one reason or another having a difficult time paying their bills. For most, the loss of a job is the primary reason for their financial troubles. Families are increasingly finding that their once adequate salaries have been reduced or eliminated as their employers have been forced to downsize or close their business. Coupled with the higher costs of living many people are forced to seek debt relief help and in many cases this includes bankruptcy advice.
For many people the lure of lower costs associated with bankruptcy and/or tax debt relief is just too great to pass up. In reality, many of them have found out the hard way that not only have they paid for promised services that they never received but that the debt has not been settled. In the case of bankruptcy filings they find out that their all-important paperwork is not complete, and whatever shelter they were seeking to keep their home or vehicles is now beyond saving and they are now essentially homeless and without transportation.
One very sad case involved a man who was attempting to save his home by restructuring his debt through Chapter 13. He employed a bankruptcy company, now commonly called a ‘bankruptcy mill’ that was run by paralegals and had no attorney either working for or consulting with the employees of this company. The paralegal that was handling the case didn’t want to drive an hour away to the future hearing, so they advised their client to list his girlfriends house as his legal address.
Because his property wasn’t listed as his primary residence, the bankruptcy court seized his home to pay creditors. If the paralegal handling his case had managed this case properly and in essence not been ‘lazy’ this person would have not lost the equity in his property and would have been protected under the law.
Along with less than credible bankruptcy mills, people also have to deal with unethical attorneys who push clients with few assets into Chapter 13 repayment plans rather than the Chapter 7 liquidation plans that make more sense. The reason for this is pretty evident because filing a Chapter 13 is more complex and therefore garners more fees for the attorney and the repayment orders include that the attorney is listed as one of the first among all the creditors who get repaid.
No matter what type of debt relief help that people are seeking, it is paramount in all cases of bankruptcy advice that people seek out reputable firms or individuals. Check with the local Better Business Bureau before signing any agreement or paying any money upfront. These first and very important steps will make the difference between being able to start fresh or having the debt and bad credit follow you for years to come.