No matter whether or not you own a residence here in Long Island, or you might be in foreclosure, Chapter 13 Bankruptcy is an a lot more effective and efficient strategy to deal with your debt than debt consolidation. Are you getting bombarded by advertisements from so-called Debt Consolidation corporations alleging that they are able to assist you? Even though most of these advertisements sound promising on the surface, and some providers give some valuable services, but did you know that.
Debt Consolidation corporations are actually telling you - indirectly - to intentionally damage your credit. They represent that they will begin to contact your creditors right away, and begin to work out payment arrangements, but in actuality, in several instances, you might be still becoming dunned by your creditors and collection agents and remain at risk of having litigation commenced against you and/or the enforcement of judgments that might have already been entered against you!!
Quite a few creditors do not discuss work out payment arrangements with consumers who pay on time. In quite a few instances, creditors won't even start to think about adjusting payment terms in any manner whatsoever until an account is no less than 60-90 days behind.
Debt Consolidation corporations are only thinking about collecting their fees. Quite a few Debt Consolidation Businesses will ask you to right away start to remit monthly payments to them. These payments aren't going to your creditors!! Debt Consolidation providers "front end load" their fees so they guarantee that they get paid regardless of no matter whether or not they produce any outcomes!!
Several Debt Consolidation companies and Not-For-Profit Credit Counseling Agencies are paid by the credit card corporations for the dollars that they collect on your behalf in addition to the fees that you simply are already paying them
While many businesses don't directly disclose it directly in their advertising, there is certainly no guarantee that all of one's creditors will handle Debt Consolidation providers. From the onset, you'll find several creditors that certainly won't cope with Debt Consolidation firms.
Debt Consolidation Corporations might not even have the ability to lower your payments at all, and the fact is, may well ask you to pay a higher amount!!
Making use of Chapter 13 bankruptcy as a pure Debt Consolidation tool is pretty straightforward.
Chapter 13 bankruptcy may be viewed as personal reorganization. In a Chapter 13 bankruptcy case, you deal with ALL of your debt obligations at when. Bankruptcy is not a "pick and choose" procedure. The law requires you to handle all of one's creditors and your creditors ought to handle you.
Creditors have no option when you file a Chapter 13 bankruptcy petition. They should comply with the requirements with the law. In Chapter 13 bankruptcy, your repayment strategy is not based upon what the creditors want or might be willing to accept. Your monthly payment shall be based on what your individual circumstances allow you to safely afford within the guidelines set down in the Federal Bankruptcy law. This quantity is determined by the Means Test.
The Means Test has been developed to determine what could be a fair and reasonable quantity to be repaid to your creditors based upon income and expense guidelines based the size of one's household and where you reside.
There is No Much better Time To Take Control of your Finances
In Chapter 13 bankruptcy, you might be in control of one's monetary situation. The filing of a Chapter 13 bankruptcy case is purely voluntary. You are actually proposing your personal repayment plan within the guidelines set down within the law. So long as the plan of repayment that you propose is in compliance using the Bankruptcy Code - your creditors have no selection and should accept the repayment terms which you have proposed.
Author Resource:
As your Long Island bankruptcy attorney , I can enable you to decide no matter whether Chapter 13 bankruptcy is really a superior route for you than debt consolidation or debt settlement. Contact my office for a no cost consultation today. You will be glad that you did.
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