bankruptcy debt relief

March 1st, 2010

It is the unreal to see that people actually talk about bankruptcy as if it is a viable debt relief option. Talking about bankruptcy is like saying that death is a better option to life because it brings an end to all your problems. Of course, you can always continue earning money after declaring bankruptcy.

However, you will be treated like a pauper and no person will be interested in giving you even a one dollar loan because you have defaulted on your debts in the past. It doesn’t matter whether you accumulate sufficient security or not. The most obvious question arises – what is the guarantee that he or she would not do it again?

Hence, before you opt for something as final as bankruptcy, check out other alternatives. If you are very close to bankruptcy, then keep in mind that escaping your debt will not be easy task. Do not expect to wake up one morning and find all your debts have vanished. That may happen in fairy tales but that is not how real life works. If you really regret your financial irresponsibility and if you are keen on repairing your past record, then you should opt for a debt settlement.

Debt settlement is a drawn out solution for your personal debt problems. It involves negotiation with your lender and confessing that bankruptcy is very close. You will have to play on the fear of your lenders of another client filing for bankruptcy. You should offer a deal that will help your lenders recover at least a slightly higher amount without causing any long term financial damage.

Debt settlement involves reduction of your debt by fifty percent to seventy percent without any repayment or obligation on your part. Once this is done, you just have to repay the balance amount. The question arises – where can I go for a thirty percent repayment when I am finding it difficult to buy food for my children?

That is the exactly where this debt relief scores over all other debt relief options. You can repay the balance amount in installments. The original amount would be waived and it would be deemed as if the balance amount was the original amount. You shall pay interest on this amount and must make payment regularly.

If you play your cards right, your debt problems will vanish before the first year ends. You can earn well, take care of the family and avoid the long term economic consequences of bankruptcy.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement.

No Comments so far, be the first to add one.

Leave a Reply