Is it better to claim chapter 13 Bankruptcy on credit cards or get one of these Debt relief compainies to ?
work with the credit card companies to reduce the payments. i have been out of work for a year due to medical reasons and I am now employed again. I went over $40000 in debt with credit cards. I want to do the right thing but I can not afford the payments.
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contact the Consumer Debt Counseling Office in your area. they are a non-profit agency that provide their services for a nominal fee and in some cases for free. they will contact your creditors to get your debt reduced and set you up on a budget to help pay off your bills.
Most places will allow you to come to payment arrangements with them and will work with you so long as you are making a genuine effort.
Honestly, we thought we were going to have to do the same as you but we were able to come to agreements with all our parties and they have been very good at working through solutions with us.
Work out a budget on a spreadsheet, cutting back where possible. Contact all your debtors and agree to pay them all the same percentage or a certain amount that you can. For us, some of the amounts were small so we tried to get them paid first to give us more money to increase the payments on some of the others later.
Bankruptcy will affect every aspect of your life. If you own your home, you may lose it, if you rent, your realtor gets a copy that you have become bankrupt and may want to discontinue your tenancy and that will make it hard to get another place.
If you get a company to do it for you, they will charge you a fee and they aren’t always successful. Try the companies yourself first and if you have no other way, then go to the people who do it for you. It might seem overwhelming at first but once it is set up, you can sit back and relax, just making sure that you keep to your arrangements.
We did it. You can too.
Good luck.
If you’ve been out of work for a year, you should be thinking about Chapter 7, not Chapter 13. Chapter 7 would wipe out the credit card debt entirely. Debt negotiation would impact your credit less, but it would not provide you with immediate relief and you may not be successful.
Consult with a bankruptcy attorney. Most of us do not charge for consultations.
Debt relief companies are almost always a ripoff. Chapter 13 bankruptcy offers many advantages over debt settlement plans: (1) they are generally cheaper. Legally fees are usually less than what a debt settlement company chargers; (2) the automatic stay protects you from ALL creditors; (3) if your repayment plan is approved, it is binding on ALL creditors; and (4) debt forgiveness achieved in bankruptcy is not taxable, but debt settle usual is taxable.
Based on your circumstances, you might be a better candidate for Chapter 7 bankruptcy. It is over much sooner, generally gets ride of all of your unsecured debt and generally is less if a hit on your credit than debt settlement or Chapter 13 bankruptcy. You should contact a member of the National Association of Consumer Bankruptcy Attorneys for further assistance.
Why don’t you try to pay off your debt by using a credit card debt relief program. This type of program is a safe and effective way to help you get you debt under control. These programs are inexpensive and definitely better then bankruptcy. Check out the site below that reviews these programs.
Before you decide to finally go for it alone, ask yourself a few questions. If two or more of these are you, then it could be the perfect time to seek the services of a bankruptcy professional. Are You: receiving harassing or ominous phone calls from people you owe? paying the minimum payment possible on your credit cards? taking out Payday Loans? soliciting for loans from friends and family? about to lose your occupation? behind in your taxes? receiving foreclosure notices? behind in child support or alimony? gambling to try and make ends meet? sick and unable to even go to work? If your answers indicate that you are in financial deep water, bankruptcy may be your best solution, but you will never know for sure until you get the advice of an attorney.
Hope this helps you.