Why File Bankruptcy When There're Debt Settlement Companies
Author: Micheal Clarke
Credit Card Debt crisis is wide-spread today. Often debtors realize that there are in deep trouble only when they are swamped by continuous creditor calls and massive debts. Unable to handle the burgeoning financial burden, most debtors resort to filing bankruptcy. With the existing laws becoming more severe, a bankruptcy would mean a very negative credit record and a long-term impact in the form of lower credit eligibility.
Others, on the other hand continue their minimum monthly payments, in the hope that they would be debt-free soon. But what these debtors fail to realize is that they are paying only the interest on the debt, and that they could run into years paying their creditors.
Debt settlement is an effective alternative available to debtors, and there are several reliable companies offering such services.
What debt settlement companies actually do is that they negotiate with creditors on behalf of the debtor, to reduce the owed sum to an amount that is acceptable to both the debtor and the creditors. Payment of such a sum releases the debtor from the debt. Creditors are in favor of a Debt Settlement Program for it would pay them at least in part unlike bankruptcy where they would be left with nothing.
A little research and time can land one with a reliable debt settlement company. There are many online resources that can help debtors locate a debt settlement company with a successful track record and a reliable customer service. An ideal debt settlement company prepares a solid recovery plan; advises debtor on the available debt relief options; recommends various expense-control measures, negotiates with creditors, and overall works for the benefit of the debtor.
Bankruptcy can certainly be avoided provided the debtor approaches a legitimate debt settlement company. For more on how to handle financial setbacks without resorting to bankruptcy, visit Nationwide Debt Settlement Group, a leading debt settlement and negotiations company.
Article Source: http://www.articlesbase.com/credit-articles/why-file-bankruptcy-when-there039re-debt-settlement-companies-1995732.html
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For more information, Visit http://www.nationwidedebtsettlementgroup.net
I am 66 years old and had to retire because of bad health.?
I owe 50,000 in credit card debt and can not make the payments with my now limited income. I know social security is exempt from garnishment, should I file bankruptcy or just take my phone off the hook? I do not have a house to sell or any assestes.
Why would the garnishment of my check stop?
if I haven’t finished paying it off ? Chrysler has been garnishing for years but stopped a few months ago. Could it be because of their bankruptcy? or is there a time limit involved?
How to stop a wage garnishment from a credit card company?
I need some help or words of wisdom as I feel very discouraged right now.
A few years ago I made some very poor choices and ran up credit card bills. About 1 ½ years ago one of the credit cards companies obtained a judgment against me. Since this time I have paid approximately 8,500$ on a credit card that had a limit of 5,000$. By both my company’s accountant and also the Sheriffs office that is enforcing the garnishment show a balance of only $70 left. I called up the attorney to inquire about the remaining balance and they inform me that I still have a balance of over $4,700!!! Needless to say this really disrupted my day and outlook. I have three children and a wife to support and I’m getting further in the whole every month. This is a lesson that I would never wish on anyone and I will not repeat.
Any words of wisdom or thoughts on how to stop this, would be greatly appreciated? I have tried avoiding bankruptcy at all costs. It is also sad that some individuals get off paying pennies on the dollar for debt. I have paid already $3,500 more than original debt and still can’t catch a break!
Help!!! How do I stop a garnishment that is keeping me from paying basic bills?
I need some help or words of wisdom as I feel very discouraged right now.
A few years ago I made some very poor choices and ran up credit card bills. About 1 ½ years ago one of the credit cards companies obtained a judgment against me. Since this time I have paid approximately 8,500$ on a credit card that had a limit of 5,000$. By both my company’s accountant and also the Sheriffs office that is enforcing the garnishment show a balance of only $70 left. I called up the attorney to inquire about the remaining balance and they inform me that I still have a balance of over $4,700!!! Needless to say this really disrupted my day and outlook. I have three children and a wife to support and I’m getting further in the whole every month. This is a lesson that I would never wish on anyone and I will not repeat.
Any words of wisdom or thoughts on how to stop this, would be greatly appreciated? I have tried avoiding bankruptcy at all costs. It is also sad that some individuals get off paying pennies on the dollar for debt. I have paid already $3,500 more than original debt and still can’t catch a break!
How should I handle pending wage garnishment?
I received a notice in the mail in March that a credit card I had (limit was $1500) was delinquent and I was being sued for $2500. I am in the process of filing for bankruptcy so I contacted the credit company and notified them.
I received a notice in the mail today that my wages will be garnished bc the court ruled in favor of the credit company. It listed my bank name on the paper.
I am 24 years old, a single mother, working full time making minimum wage. I own nothing, no car, very little furniture, no property. I have several medical bills, hence me choosing to file bankruptcy.
The court said I could dispute the wage garnishment but I worry that my income (under $400 every 2 weeks) will be taken from me as soon as Friday.
Is there something specific I should do? I am afraid.
By federal law they can only garnish 25% of disposable earnings or 30x the federal minimum wage (which ever is smaller). There are state laws that can modify this. My sister told me she could only get garnished for 5 months then they would have quit for that year. Check if your state has laws that minimize how much can be garnished.
I am 63 and had to retire due to health. I had 40K in credit cards. I had to pay because I owned property other than my home. If you have no assets then you are probably better off filing bankruptcy, but talk to an attorney to find out for sure . Usually the consultation is free.
If you listed the credit card company on the wage garnishment, they cannot collect from your paycheck. I was forced to do this many years ago, it will stop. Also make sure the lawyer handling your bankruptcy knows this and notifies the credit card company before they get any money.
Thats the nature of interest. It sucks. You could be paying this off for a long time because the interest never stops building. Once the judgement is ruled, you would have to get it reversed if thats even a possibility, however, youv’e shown the courts already that you wouldn’t pay it before the judgement. You may be able to work with the collection agency assigned to your debt and make some kind of lump sum pay off.