It doesn’t matter if you’re still stuck with creditors. After five years you can take it upon yourself to file for bankruptcy. However, this shouldn’t be your sole option. If you’re not going to make a repayment or you’re unable to make a payment on your debts, filing for bankruptcy is the wrong option.
There are several ways to go about filing for bankruptcy, but one of the most important is debt settlement. If you are bankrupt and searching for a solution to help ease your situation, debt settlement may be the best one to choose.
You may be wondering why creditors would insist on debt settlement. To maximize their profit and make money from their interest rates, most creditors will negotiate for a lower interest rate than what you or I can afford. I know from personal experience that by doing some ‘experiment’ with debt settlement, the more you’ll have to pay. Your debts will be lower and your payments will ease considerably.
Debts may take some doing it themselves in as well. If you do take to such a method, you must be serious about making that impossible. How can I commit myself to spending my entire credit limit each month and paying only what I have to pay back? That is usually the only way I can get out of this situation, and for many people this may be the only alternative to success.
Debt settlement is a pretty big cost to both of us. I’ve seen people pay over $1,000 in monthly interest from all sorts of sources, from debtors to employers. All of them. I mean, you have to be kidding me!
Many financial advisors have advised against debt settlement. Some even state that it will lead to depression and thereby end your financial prospects. No, really (and I used to be a little dubious) and some of them still do. However, they are far less likely to negotiate with creditors if you are already hurting your finances by declaring bankruptcy.
Let’s take one example simply. In 1997 I filed bankruptcy on my third attempt at a Chapter 13 bankruptcy. Despite the fact that Chapter 13 and chapter 7 are still around and already dealing with problems, the chances of me ever filing for Chapter 7 are still pretty good. If I were to continue on like this I’d probably declare Chapter 7 and then Chapter 13 as I go along.
Unfortunately it’s not only my personal financial situation that is at stake. Despite the fact that Chapter 13 is being done with the mindset that we can simply ‘lose and do it all again’ in spite of the fact I was able to pay off my debts all these years ago- Chapter 13 is taking care of the rest.
One way that I’ve come out on top in regards to filing for bankruptcy is by paying my utility bills. I may not earn enough to pay off my debt from the beginning, but I have managed to pay off several hundred dollars or more over the years due to paying off my utilities and getting an excellent credit rating.
If the combination of Chapter 13, Chapter 13, Chapter 7, Chapter Again, and Chapter 4 is any indication, I am not headed back down the slippery slope of financial disaster. I just have to make sure that I make that necessary payment every month on time from all of my debts that I know are still out.
In the long term I guarantee that will be the order of the day.
Bankruptcy And The Consequences
The loss of your home and livelihood due to a foreclosure is an unending headache that will take years to subside. Though you may be feeling generous, you need work now, urgently. You need to get rid of piles of bills and other credit related debt. All you need to do is find ways to reduce the amount of credit you get taken out of balance-years on credit. It’s your duty and responsibility to your family and friends and the community for that matter.
Millions of people live in debt-plagued cities especially those in the South. Although it has become very commonplace to sit in a restaurant or store and complain about the sky dropping cost of living because of housing policies created by the Bush Recession, homeowners themselves are sometimes victims of foreclosure. Before those policies went into effect, it’s unlikely you’d be having problems finding affordable housing. The chances of you going bankrupt are one in one hundred, even less in some cases. The banks themselves are victims too, who are paying thousands in fees and charges for fixing accounts and mortgages.