Debt relief options that help you repay unmanageable bills
Budget and bill payments: This is where you plan a personal budget in order to get a grip on your financial situation. The idea is to increase your monthly savings, so that you can easily pay off your debts. The mode of bill payment depends upon you completely. You can eliminate your high interest debts first and then the low-interest ones, or vice-versa.
Debt management: This program helps you plan a budget and your monthly payments based on your financial status. Here, the professional debt consultant co-ordinates with your creditors to slash your interest rates. This may in turn lower your payments, and help you manage debts proficiently.
Debt settlement: In a debt settlement program, a professional debt arbitrator will negotiate with your creditors to reduce the principal as well as interest, and fix an affordable repayment amount that is acceptable to you and your creditor.
Debt consolidation: When you go for this option, your existing debts are merged into a single low monthly payment which you can easily afford to make. The professional debt consultant will negotiate with your creditors, and help you lower your interest rate, so that you can make one affordable monthly payment.
Chapter 13 bankruptcy: This involves a court monitored restructured payment plan to clear debts over a period of 3-5 years. In Chapter 13 bankruptcy, a debtor can save his home and other important assets while discharging debts. The debtor can take advantage of attorney services to repay bills by filing Chapter 13 bankruptcy.
Chapter 7 bankruptcy: It allows you discharge most of your secured and unsecured debts. Non-exempt assets will be liquidated, and the cash proceeds will be used to pay back the creditors. However, you may not qualify for Chapter 7, if you earn more than the average state median income. Experienced attorneys can guide you at every step of Chapter 7 bankruptcy process.
Disclaimer: The contents of this web site are not intended to establish an attorney-client relationship, provide the reader with legal advice, or substitute for legal advice from an attorney.
The debt settlement program typically lasts between 6 months to 4 years time.
At least 30% of the debt amount per creditor needs to be accumulated in the trust account for OVLG to give the creditor any settlement offer.
Not all creditors or debt collectors will accept a reduction in the balance, interest rate, or fees a customer owes such creditor or debt collector.
Pending completion of the represented debt-relief services, the customer's creditors or debt collectors may pursue collection efforts, including initiation of lawsuits.
That the use of the debt-relief service will likely adversely affect the consumer's creditworthiness, may result in consumers being sued by their creditors, and may increase the amount owed to creditors as a result of the accrual of additional fees and interest;
Savings a customer realizes from use of a debt-relief service may be taxable income.
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