Help With Credit Card Debt – Think Twice Before Filing Bankruptcy
Author: coleman stump
Bankruptcy is not a good way to come out of debt if you can afford other debt relief options to help you out with your financial problems. No matter which chapter of bankruptcy you qualify for it is still not a good way to pay off the debt that you owe to your creditors. It is better to cut down on your spending habits than file for bankruptcy.
1. If you are not being able to take control of your financial problems then it is better to get some financial advice through credit counselling. They educate their customers on how to save and avoid bankruptcy. This method does not have a negative impact on the customer’s credit report.
2. If you have been a good customer and have always made payments on time then it is possible for you to get a lower rate of interest. Creditors can negotiate on the interest rates and can generally give 2 % rebate on the interest rates.
3. It is also possible for the customer to negotiate and get the penalty charges removed from his account. Many creditors will negotiate on these terms. This will bring down the total balance that is due on your account.
4. Consolidate all your card loans into one. Taking out one loan with a lower rate of interest in order to pay off all other loans will save you a lot of money. People generally opt for debt consolidation for lower interest rates of fixed rate of interest or just for the ease of serving only one loan rather than many loans.
5. Debt settlement can help the customer in reducing the total amount of the loan through negotiations with the credit card companies. As much as 50 % of the debt amount can be reduced through this method.
Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.
Check out the following link to get a free consultation from a debt relief specialist in your area:
Article Source: http://www.articlesbase.com/debt-consolidation-articles/help-with-credit-card-debt-think-twice-before-filing-bankruptcy-2808127.html
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Where can I obtain a certificate of service form to add a creditor to my banruptcy case?
I received a deficient filing notice from the bankruptcy court here in Indiana. I need a copy of a certificate of service form to add a creditor to my bankruptcy.
My husband wld like to file for bankruptcy and make plans to pay one of his creditors by installment.?
He is not earning much and I believe he might be able to service only this particular creditor. Can other creditors request for installment payment too? Will other creditors get to know that he is filing for bankruptcy and demand payment as well?
How do I type a letter to my creditors to settle a debt?
I am trying to write a letter to my creditors. My husband and I want to keep from having to file for bankruptcy. We want to settle our debt and just recently modified our mortgage. We do not have the money to try to go through a service provider and do not want to go through a consolidation but want to work with settling our debts directly with the companies.
Is there anyone that is doing the same thing and can share their letters/tips and advice with us?
Thank you,
Heather
Can a public utility deny me new services if they are a creditor in my bankruptcy case?
I am filing for bankruptcy and PSE&G is one of my creditors that I will be having my unpaid past due utilities fees from my prior apartment discharged. In a few months, in my new apartment, I will need to take over “ownership” of the utilities and will have to start a new contract with my name on it – will they deny me service based on my bankruptcy and having my debt with them discharged?
Can a creditor (business) refuse service to a bankrupt individual?
I am a business owner and have had several individuals file bankruptcy and name my business as a creditor. I have not filed a claim to try and get my share of the money as it is not worth the cost. This is a California business, that deals with monthly recurring memberships.
Can I refused to do business with these individuals if their bankruptcy is discharged? Meaning, the amount that was owned to my business cannot be pursued, but can I refused service because of their bankruptcy.
There seems to be some misunderstandings on Bankruptcy. First when you file Bankruptcy you MUST include all of your assets and debts. So he can not just include certain creditors and leave others out. There are also two means tests that must be passed in order to file a Chapter 7(liquidation). If those are failed he would be forced into a Chapter 13(known as a wage earners or repayment bankruptcy).
If he is only having trouble with one creditor it may be better to try and work it out with them individually. Depending on the type of debt he may want to look into credit counseling. These companies can negotiate with most creditors to interest rate and payments. You should take a look at the National Foundation for Credit Counselors at http://www.nfcc.org.
The other item you need to look at is how will BK effect you if he files on his own. If you think BK may be an option you need to talk to a couple of BK attornies in your area. They can go over your specific information.
They very well may.
If they do accept you, they will either want the utilties in another persons name…or a hefty down payment/deposit/connection fee.
You can’t expect to stiff them and then want them to welcome you back with open arms!
Yes, IN MOST CASES you can decline to do business with them again (unless your business is a quasi-public utility, such as one that provides water or electrical power), so long as your refusal to provide service is not an attempt to collect a discharged debt (i.e., you do not want to do business with that individual again, period, and still wouldn’t even if they suddenly came up with all the discharged debt they already owed you plus interest).
http://www.in.gov/judiciary/forms/orig-actions.html
3 different formats here
Credit card companies only settle when you are way past due…like at least 3 months….More commonly they might settle at 4-6 months past due. If you are current right now then don’t waste your time trying to settle.
The issue with settling is that they are probably going to want a lump-sum settlement up front rather than paying small amounts over time to them. It never hurts to try though if you can only offer monthly payments….If you are greater than 3 months past due, then start your offer at 25% and go from there. Mail them a a latter stating:
I am willing to settle this matter for 25% of the original amount. If this offer is agreeable, then please send me a written agreement on your company’s letterhead that you will accept this amount as “payment in full” and that is issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.
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- If you are way past due, then don’t waste your time hiring a debt consolidation firm as you’re already in a position to negotiate on your own.
- Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be settled/paid in full upon receipt of this amount from you. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you
- NEVER give out your checking account/bank routing numbers to debt collectors for making electronic debit payments. Pay only by USPS money orders.