Looking for Debt Relief in Portland, Oregon?

Dealing with the stress of too much debt can be overwhelming.  

But, GOOD NEWS, YOU HAVE OPTIONS that can help you become DEBT FREE once again!

DEBT MANAGEMENT

If you have accumulated too much credit card debt or other unsecured debts such as:

• STORE CARDS
• PERSONAL BANK LOAN
• PRIVATE STUDENT LOANS
• REPOSSION DEFICITE JUDGMENT
• MEDICAL BILLS

In a Debt Management Program, a Debt Management Company will contact each of your creditors and set up agreements to repay your entire balance. In most cases, your interest rate will be lowered or eliminated and late fees and over-the-limit fees will be stopped or forgiven.

You will have ONE MONTHLY PAYMENT which will be distributed to  each creditor according to the agreements.  This payment is approximately 2.5% - 2.7% of the total balances of all of your accounts.

For example, let's say you have a total of $20,000 of unsecured debts.  Your monthly payment in a Debt Management Program would be approximately $500 - $540.  This includes the monthly Debt Management Program fee.

Not everyone can handle this payment.  If this is your case, them you should check out and investigate a:

DEBT SETTLEMENT PROGRAM

Debt Settlement is for people who have had a serious financial setback due to a number of factors including:

• UNEMPLOYMENT
• ILLNESS
• DISABILITY
• DIVORCE
• DEATH OF SPOUSE OR PARTNER

There are several factors to consider before enrolling in a Debt Settlement Program, but see if some of these describes you:

• Missing or unable to make all of the minimum monthly payments required by your creditor.
• Taking cash advances to be able to pay basic monthly bills.
• Some or all of your accounts are 60 -90 days past due.
• Some or all of your accounts have been charged off and placed with Debt Collectors.
• You are getting numerous DEBT COLLECTION CALLS!
• You have received a SUMMONS.

BANKRUPTCY

 Photo by:

http://www.flickr.com/photos/89463094@N02/

If you are considering enrolling in a Debt Settlement Program, you may be asking yourself, "Does Debt Settlement really work?"

There are several options available to help you get your debt under control, including:

• Debt Management Program
• Debt Settlement Program
• Consolidation of Debt

While a Debt Management Program may be just the program you need, if you are having a tough time just keeping up with the minimum payments, you should consider a DEBT SETTLEMENT PROGRAM.

Some of the adantages of a Debt Settlement Program:

• ONE monthly payment that is typically much less that what you are paying now.
• Most debts can be negotiated at 50% or in some cases, much less.
• A typical Debt Settlement Program will be about 36-48 months, depending on a number of factors.

So, the question you may be asking is, "Does Debt Settlement really work?"

Yes, if you fit the criteria for a Debt Settlement Program.  Many so-called "Debt Settlement Companies" only offer...Debt Settlement as the answer to anyone with debt problems.

Everyone should know that "one size does not fit all"!

Before you decide, it is critically important that you explore all of the options that are available to you.

But if after discussing your situation with a qualified, experience debt relief specialist, you deteremine that a Debt Settlement Program is what you need, you might want to ask for some proof of actual settlements.

Check out some of the actual settlements we have been able to negotiate for our clients:

Successful negotiation of unsecured debt depends on several factors. 

For example, if you are retired and living on Social Security and/or a retirement income, both are 100% exempt from any garnishment or levy by a debt collector.  For these clients, settlements below 50% are possible.

Debt Settlement is really for those who are in a very bad financial situation.  Most prospects for a debt settlement program have had something happen in their lives that has caused them to get over their head with debt, such as:

• Unemployment
• Illness or disability
• Death of a spouse or partner
• Divorce

If you find yourself with too much debt and just not enough income, then you owe it to yourself to look into how debt settlement works and see if would work for you.

 photo by: Eleaf

New year, new year's resolutions. Don't you think it is about time for you to consider Debt Relief?

Sure, you say, but what is "Debt Relief"?

I'm talking here specifically about finally starting to take control of your unsecured debts...mainly credit card debt.

You've heard or read the statistics about how many individuals have too much credit card debt based on their income and living circumstances.

With credit card interest rates anywhere from 12%-24% or higher, if you are just making the minimum payments required, it could take you 10 years or more to finally pay off those debts!

Wouldn't it feel great to be DEBT FREE? OK, here are some tips that can really help if you will apply:

FIRST:  Do you know exactly where you are financially?  I mean, can you account for almost every dollar that comes in and for every dollar that goes out?

Most people have a vague idea, but have never taken the time to do a complete, thorough Financial Worksheet.

After completing a Financial Worksheet, I've had people say, "WOW, I had no idea that I was spending so much money on stuff like Starbucks, movies, burgers, etc."

Until you get a clear picture (and you may not like it) of where you really are, you cannot possibly make a plan to become Debt Free.

Here is a simply, easy-to-use Financial Worksheet that you can download:

SECOND: Now that you have a clear, honest (it won't help if you are not honest with yourself!) picute of where you are, it's time to get an up-to-date CREDIT REPORT.

You can get a FREE CREDIT REPORT annually that will tell you how much debt is being reported to the 3 Major Credit Bureaus (Equifax, TransUnion, Experian).

Not only will this report tell you to whom and how much debt you have, you may also discover that there are errors on the report.  I've read reports that 1 out of 4 people have errors on their report.

If you find errors, you can file a challenge to each of the bureaus on line or you can mail a challenge.

The following links will help:

Equifax disputes

TransUnion disputes

Experian disputes

There is a very good site from the Federal Trade Commission that will give you some good points on for do-it-yourself credit repair.

OK, but how about all of the legitimate debts that is being reported?

Break them down into two basic groups:

Secured debts, such as:

• First Mortgage loans
• Second Mortgare or Equity Line of Credits
• Auto, boat, RV loans
• Government Student Loans

There is not a lot you an do about these except keep paying.

But on the other hand, all of the UNSECURED LOANS, such as:

• Credit Cards
• Store Cards
• Personal loans
• Mecical bills
• Pay Day loans
• Private Student Loans

You do have options as to how to repay these...read on.

NEXT... List all of the unsecured loans like this:

             Creditor, Interest Rate, Payment (minimum), Balance

Here is where the Financial Worksheet is so important.

After completing the Financial Worksheet, you will be in one of the following groups:

After all bills (including all debts) are paid, I have $100 - $200 extra each month that could be used to start paying down unsecured debt.

You find out that you are basically even at the end of the month.  You are paying all bills (including all debts) and you have basically $0 left over, but not negative.

Finally, if after completing a thorough Financial Worksheet, you realize that you are coming out negative at the end of the month. 

You probably alreaday knew this, as you have been "robbing Peter to pay Paul" for a long time.  In fact, some, if not all of your unsecured debts are 30,60 or 90 days late and some, if not all, have been charged off and gone to a Debt Collection Agency.

Here are your options, based on your personal financial situation (revealed from the Financial Worksheet and Credit Reports):

Group One... Those of you who can put an extra $100-$200 towards paying down unsecured debts.

You should use a SNOWBALL PLAN to pay off those unsecure debts a lot sooner and at the same time, save you thousands of dollars in interest!

Basically, you break down your unsecured debts and start paying extra to the one with the lowest balance. 

After this one is paid off, you use the same extra, plus the minimum payment just paid off plus the minimum payment due  on the second and put all of that towards that second debt.

For a more complete overview, click here.

But what about Group 2?  You are making all of your payments, but there is just not anything left over?

You should be able to qualify for a DEBT MANAGEMENT PROGRAM.

• In a Debt Management Program, you will have one monthly payment that will be disbursed to each of your creditors by a Debt Management Company.
• Your interest rates should be reduced significantly.
• Late fees and over-the-limit fees should be stopped or forgiven.

In short, a Debt Management Program can not only help you become Debt Free in a shorter amount of time (usually about 48 months), but save you thousands of dollars in interest and fees.

Finally, what about Group 3?  Those of you who have too much unsecured debt and are not only not getting anywhere but really can't afford your payments...here are your choices:

• DEBT SETTLEMENT
• BANKRUPTCY

Debt Settlement is a great way to pay off/settle your unsecure debts without having to resort to bankrutpcy.

Debt Settlement will allow you to have:

• One Monthly Payment (usually much lower than the required total minimum payments now)
• Your Debt can be settled at 50% or lower (depending on several factors)
• You can be DEBT FREE in about 48 months.

To receive a FREE REPORT called DEBT SETTLEMENT FOR BEGINNERS, click below:

But if you cannot even afford the reduced payment of a Debt Settlement Program, then you should consider BANKRUPTCY as a way to not only cancel your unsecured debts, but relieve the constant finacial pressure and worry that comes from such a severe financial condition.

You should consult a Bankruptcy Attorney who specializes in Bankruptcy.  You should be able to schedule a Free Consultation to deteremine if you qualify.

Regardless of your situation, there is a way to not only become Debt Free, but stop the collection calls and relieve the constanct pressure that comes with too much debt.

Photo By: Eamon Curry

2014 is just around the corner and here are a few tips on how you can live DEBT FREE!

If you are like millions of consumers, you probably have taken on too much debt this last year. 

This could be due to just too much spending or because of circumstances beyond your control, but either way, carrying too much debt creates all kinds of stress!

Here's a few tips that can help you live debt free in 2014:

If you don't know exactly where you are financially, then it's time to find out!  Many people have no real idea of what they are spending money on.  If this is you, it's time to do some homework and complete an honest (that's right...list everything coming in and going out!) budget worksheet.

Once you know where you stand, it's time to decide what the best plan of attack on those debts should be.

If you are just making the minimum payments on all of your unsecured accounts, then you know it could take many years to finally repay those debts.

You may be qualified for a DEBT MANAGEMENT PROGRAM.

Advantages of a Debt Management Program:

• ONE Monthly Payment
• Reduction or elimination of your interest rate
• Forgiveness of over-the-limit or late fees
• Usually DEBT FREE in approximately 48 months (varies)

Click here to learn more about a Debt Management Program.

But, if you are not making the minimum payments, and have had some or all of your accounts going to collections, you should consider a DEBT SETTLEMENT PROGRAM.

Advantages of a Debt Settlement Program:

• ONE Monthly Payment which is usually about half of what your total payments are now!
• Eliminate Debt Collection calls
  
• Settle many of your accounts at 50% or less (varies)
• Usually DEBT FREE in 36-48 months (this will also vary with the amount of debt)

But, what if you just are so far behind that you do not have any discretionary income (money left over after all the major bills are paid)?

If that is the case, then you may need to consider BANKRUPTCY PROTECTION.

Notice I said "Bankruptcy Protection".  Bankruptcy allows someone who is just too far in debt to ever recover, keep a very large portion of their assets (home, car, etc.) and have most or all of their debts dismissed.

There are different types of bankruptcies, and you should consult a BANKRUPTCY ATTORNEY to decide which one would be best for you.

You can be DEBT FREE, but you have to take action.

If it seems overwhelming, we can help.

If you live in Oregon, I've got some good news on how you can find debt relief!

If you are fighting each month to just barely get by, you are not alone.  Statistics abound about how the average family has several credit cards and several thousands of dollars of debt.

What can you do about it?

Face the problem, honestly!

When is the last time you sat down and completed and honest, up-to-date HOUSEHOLD BUDGET?

If you are having a difficult time with too much credit debt, then the natural tendency is to avoid or ignore the facts, but you can't get out of debt without know exactly where you stand financially. Once you know exactly what you have coming in and exactly what you are spending your money on each month, we can devise a plan.

BASIC DEBT RELIEF OPTIONS:

DEBT MANAGEMENT

In a Debt Management Program, you will be making ONE PAYMENT to a Debt Management Company or what some people call a Credit Counseling Company.

This company will in turn have contacted each of your creditors to arrange a repayment plan.

Most Debt Management Programs take about 48 months to complete. 

Once you have competed the program, you will not only have saved a substantial amount of money in reduced interest and fees, but your credit report will reflect that you have $0 balances and your credit score will start to improve.

The problem with most Debt Management Programs is that depending on the amount of debt you owe and your left over or net, disposable income each month, you may not qualify.

Example:

Let's say you have $25,000 of various credit card debt.  At 2% of the $25,000 you owe on all of your cards, your minimum payment was $500.

Because the credit card industry figured out that they will make much more money in the long run if they make the minimum payment so small that that most people will take 10 -15 years or more to finally repay the debt.

And, the most tragic thing is that if and when you finally do pay all of the credit card debt, you will have paid 3 - 4 times more than you originally borrowed!

But in a Debt Management Program, you most likely will need to pay about 2.5% of the total, or in this case of $25,000 total credit card debt, $625 monthly!

But don't panic!  There's another option:

Debt Settlement

In a Debt Settlement Program, your payment or actually, your deposit to a bank insured reserve account is based on several factors:

• The type of income you are receiving
• The amount you have left over at the end of the month
• Your health
• Your retiement status

In a Debt Settlement Program, your creditors will not be receiving normal, monthly minimum payments as before.

Most people who have so much debt that they cannot keep up have fallen behind already or have had some accounts turned over to debt collectors anyway.

A professional Debt Settlement Company will negotiate a reduced balance (usually around 50% and sometimes less) with the creditor or debt collector.

Once the debt has been settled (by lump sum payment or over series of payments), the debt collector will report the debt to have been "settled-as-agreed" to each of the Credit Reporting Agencies.

For more information about Debt Settlement, click below:

But what if you do not qualify for Debt Management or Debt Settlement?

If that is the case, then you may need to seek BANKRUPTCY PROTECTION from your creditors.

Bankruptcy is a viable option to finally get out of debt.  Bankruptcy should be viewed as the last option (in my opinion) and not just a "get out of jail card" so to speak.

You will need to sit down with a BANKRUPTCY ATTORNEY in your area to discuss your situation and your options.

Depending on your specific financial circumstances, you will most likely be placed in a Chapter 7 or Chapter 13 bankruptcy.  The bankruptcy attorney will explain the differences.

We have been helping Oregonians become DEBT FREE for over 10 years.  Don't let fear of the unknown keep you in contast turmoil over too much debt.

You have options for debt relief, and we can help!

Confused about Debt Settlement?  Here are some easy to understand, basic information about debt settlement that will help.

If you are like thousands of others of consumers that have way to much debt, take heart!

There are several options for you to become DEBT FREE once again, including what is referred to as DEBT SETTLEMENT.

We are all living through some very financially difficult times.  Yes, there are those who say that our economy is starting to rebound, but if you are like so many people, just trying to survive has lead to a mountain of debt that may be out of control.

Most people that seek our help have not run up thousands of dollars of unsecured debt such as:

• Credit Cards
• Store Cards
• Personal loans or lines of credit
• Private student loans
• Cash advance loans

No, most people are probably like you and are in this debt mess due to one or more of the following:

• Major accident or illness
• Limited fixed income of Social Security or meager Retirement Benefits
• Disablitly
• Divorce
• Death of spouse of partner

So, here you are with several credit cards that have balances that demand more of a monthly payment than you can afford!

If you qualify, a DEBT MANAGEMENT PROGRAM might help.  Debt Management is the modern name for what we use to refer as CREDIT COUNSELING.

In a Debt Management Program, each of your creditors usually (not always) agree to a reduced interest rate and possibly a waiver or reduction in over-the-limit fees or late fees.

You would have one monthly payment that is made to a Debt Management Company and they in turn distribute the required amount to each creditor.

Most Debt Management Programs take about 48 months (some less and some more).

The problem with most Debt Management Programs is that the required monthly payment is just too high for all of the debt your are carrying!

For example...

If you have a total of $25,000 charged on several credit cards, the payment needed for most Debt Management Programs would be about 2.5% (or a little more) or about $625 per month!

In my office here in Portland, Oregon, I've had many people tell me, "Are you kidding?  If I had that much, I wouldn't be behind!"

So, that leaves us with Debt Settlement.

In a Debt Settlement Program, a debt counselor will go over your financial/household budget to determine where you stand.

This can be very revealing, as most people take the "head-in-the-sane" approach with so much debt.

You may find out that after being honest with yourself, you really only have about $350 per month remaining after all the essential bills are paid!

DON'T PANIC!

With a Debt Settlement Program, your creditors are not going to be receiving monthly payments.

Instead, you are going to be making a deposit into a FDIC bank account each month.

Yes, your accounts are going to become "late and/or delinquent", but really, there is nothing you can do about it due to your financial hardship.

Once your account is late approximately 120-180 days, the account will be most likely referred to a debt collector.

Now, the original creditor will be willing (not always, but in most cases) to accept a settlement for less that is due on the balance.

Most settlements average around 50% of the balance.  Some lower and some higher, depending on circumstances.

Once the account is SETTLED, you will receive a letter stating that this account has been "paid-as-agreed" or "settled-as-agreed".

The credit reporting agencies will be notified that this account has been settled as well.

Over time, your credit score will show improvement!

If you would like to receive a FREE BOOKLET that will explain more about DEBT SETTLEMENT, click below:

When you have too much credit card debt, you only have a few options. 

Here are 3 options for credit card debt relief:

#1 Debt Management or what is commonly referred to as Credit Counseling

The credit card industry makes billions of dollars loaning us money to purchase things with credit versus using cash.

You can get several types of credit card interest calculator programs on line, but I found a good one at ZilchWorks.

You will be shocked to see how much interest and fees you really pay on your credit cards!

For example...

Let's say you have a Visa Card with a balance of $2,500 at an annual percentage rate of 21%.

How long (and how much) do you think you will repay if you make the minimum payments until the balance is fully paid?

I know it is hard to believe, but you could end up paying back anywhere from 4 to 5 times the original amount you borrowed!

If your one of the 7 out of 10 people in the US that has a credit card balance, and are only able to make the minimum payments each month, you should consider a DEBT MANAGEMENT PROGRAM.

In a DEBT MANAGEMENT PROGRAM, you will have:

• ONE MONTHLY PAYMENT
• REDUCED INTEREST RATES
• WAIVED LATE and/or OVER THE LIMIT FEES

Most Debt Management Programs take about 4 - 5 years to complete, and the consumer will not only be DEBT FREE, but save thousands of dollars in interest and fees.

Does a Debt Management Program hurt you credit score?

Common question, but the answer is not just a simple "yes" or "no".

There are many factors that go into determining a credit score and I've written several blogs over the last few years.  Go to "What Determines My Credit Score" for more information.

But for now, the best answer is "no" because with too much credit, your credit score most likely has already been damaged.

The only way to improve your credit score is to start paying off those debts and a Debt Management Program may be the way to go for you.

But, not everyone can qualify for a Debt Management Program. If that is your situation, then you should strongly consider a DEBT SETTLEMENT PROGRAM.

#2 Debt Settlement Program

Features of a Debt Settlement Program:

• Have ONE MONTHLY PAYMENT (that will fit your current budget)
• Each of your debt will be negotiated at a balance that is approximately 50% of the current balance.
• A QUALIFIED, PROFESSIONAL Debt Settlement Company will explain all of the pros and cons of a Debt Management Program.

There has been a lot of good and bad press written about Debt Settlement Companies.

Here are 3 tips on choosing a good Debt Settlement Company:

1)  Check with the Better Business Bureau.  It is not important that the company be an "accredited" company with the BBB.  The BBB charges a fee (no, the BBB is not a government agency but a "for profit" company.  What you are looking for is the rating (A+) and complaints.  Stay away from "shady" companies!

2)  Are they registered with the state?  Not all states require registration, but if your state does, DO NOT choose a company that is not on the state's list of registered Debt Settlement/Management companies.

3)  When you call the company, are you connected with someone you can understand and that seems to be more interested in you than just "signing you up"?  A good Debt Settlement Company will offer a FREE CONSULTATION WITH NO OBLIGATION.  Don't let anyone or any company pressure you into making a quick decision!

If you do not qualify for a Debt Management or Debt Settlement Program, then you may need to seek BANKRUPTCY PROTECTION.

#3 Bankruptcy Protection

Although the word "bankruptcy" brings up all kinds of sentiments and feelings, in some cases, it is not only the only choice, but could be the best choice!

If your financial situation is so dire that you cannot make payments towards your debts, then you must seek the counsel of a qualified attorney who specializes in bankruptcy.

He or she must offer an initial free consultation and demonstrate not only a professional but personal quality.  If you would just like to get more information without making any commitment, then click on the button below:

One of the most commonly asked question we get here at Debt Relief NW, Inc. is…

“When or at what point is bankruptcy my best option?”

For over 10 years now, we have been helping people avoid bankruptcy through debt settlement.

While debt settlement is not the answer to everyone’s financial problems, many times the traumatic and gut wrenching process of bankruptcy can be avoided through debt settlement.

When we interview someone to determine the best course of action based on  their specific circumstances, there are basically 3 options for most people:

Debt Management

The credit industry figured out that if they only charge you a very small monthly minimum payment coupled with a large interest rate, late fees, over-the-limit fees and an annual account fee, they (the credit card company) would make 3-4 times the original amount they let you borrow!

The goal of the credit card industry IS NOT for you to pay off your debt! 

The goal is for you to be paying small minimum payments for many, many years!

In a debt management program (sometimes still referred to as “credit counseling”), a person who is barely making the minimum payments on their credit cards and other unsecured debts (store cards, personal lines of credit, pay day loans, etc.) will enroll all of those debt with the debt management company.

They will usually be required to have a payment that is approximately 2.5% of their total indebtedness. For example, let’s say you have several cards and personal accounts that total $25,000.

In a debt management program, your single monthly payment would be approximately $600-$625 per month for approximately 4 years or so.

This is a great way to get your credit accounts under control and have a day in the future when you can finally be DEBT FREE!

But, what if you cannot afford the minimum payment required by a debt management company?

Debt Settlement Program

A prospect for a Debt Settlement Program usually fits into one or more of the following scenarios:

• They have too much debt and cannot keep up with the minimum payments.
• Some or all of their accounts have gone (or are about to go) to a collection agency.
• They cannot afford the payment required of a Debt Management Program.
• They want to avoid bankruptcy if at all possible.

In a Debt Settlement Program, your current creditors WILL NOT be receiving normal monthly payments.

Instead, your accounts that have become delinquent will be/or have been charged off and sent to a collection agency for collection.

After a thorough financial consultation, the debt settlement counselor will evaluate what you can reasonably afford to set aside monthly into a Client Reserve Account.  As this account grows, the debt settlement company will be contacting you creditors and/or collection agencies to negotiate settlements.

Depending on several factors, settlements may be negotiated with a one-time payment from the funds accumulated in your reserve account or a term-settlement may be negotiated whereby the collector agrees to a reduced settlement paid out over a specific period of time.

Once the settlement agreement has been completed, the collection agency or creditor will contact each of the 3 major credit reporting agencies (Experian, Equifax and Transunion) to report that the account has been paid-as-agreed.

Over time, as your accounts are settled, you credit score begins to improve.

But what if you cannot afford much more that a small monthly deposit to the reserve account or nothing at all?

This is where Bankruptcy becomes a “tool” to protect you from creditors who choose to:

•     Seek Wage Garnishment
•      Levy a Bank Account
•      Place a Lien on your property

If you are considering bankruptcy, you should consult one or more attorneys who specialize in bankruptcy.

Bankruptcy should not be viewed as a “get out of jail Free Card”, but rather the last and only option when faced with insurmountable debt.

Have you ever wondered about what is the difference between a chapter 7 and a chapter 13 bankruptcy?  This post will help clear up the confusion!

DO NOT take the information to follow as legal advice!  Before making any decisions, you should consult an experienced, licensed bankruptcy attorney. 

Chapter 7 bankruptcy is a liquidation form of bankruptcy. 

This means all of your non-exempt assets get sold and the proceeds are shared amongst your unsecured creditors. 

However, many of your assets will be classified as "EXEMPT", and will not have to be sold if they fall under the following guidelines: (again, these change all the time, so make sure you consult a licensed bankruptcy attorney!)

Few examples of exempt assets:

How do you value your property?

The rule of thumb is to use garage sale prices, although current events can cause certain items’ value to sky rocket and the Trustee will sell it for what he or she can receive and not what you think it is worth.

It is important to know which debts get discharged in a Chapter 7 bankruptcy and which will remain after filing. 

After the bankruptcy completes (which is usually 4 months if there are no non-exempt assets or a minimum of 10 months if there are non-exempt assets) you receive a discharge.  This means you are no longer responsible for paying those dischargerable debts.

In most cases, a Chapter 7 bankruptcy is more attractive than Chapter 13 because it is much shorter time commitment and you don’t have to give up all future disposable income for 3-5 years. 

But what if you do not qualify for a Chapter 7?

Then you would most likely file for a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy involves paying your creditors back over a period of 3-5 years.  You take your monthly expenses away from your monthly income, what is left over is called disposable income. 

The entirety of that disposable income, a minimum of $100 will get paid to your unsecured creditors. 

At the conclusion of your 3-5 year period, what they have received is all that they get and the rest of the unsecured debt is discharged.  If you pay your creditors back in full prior to the 3 to 5 years finishing, than your case closes since there is no longer any debt to administer.

You only want to file a Chapter 13 bankruptcy if either you can’t use Chapter 7 or a Chapter 13 would give you an advantage.  A Chapter 13 must be used if you make too much money under the means test to qualify for a Chapter 7 bankruptcy or you have filed a Chapter 7 bankruptcy within the last 8 years. 

You gain an advantage from filing a Chapter 13 bankruptcy if you need to catch up on back mortgage payments or you have certain tax or domestic support debts.  There are other reasons to file a chapter 13 and I would strongly recommend consulting a licensed bankruptcy attorney if you are contemplating filing.

One last important difference between these two chapters of bankruptcy is what happens if you want to quit the process. 

A Chapter 13 bankruptcy is a form of voluntary repayment, which you can stop at any point.  There will be no penalty, just all the debts will once again come due and you will have lost the protection of the automatic stay. 

A Chapter 7 bankruptcy is a liquidation form of bankruptcy and once initiated continues until the Trustee is finished.  This is true even if you voluntarily give up your right to a discharge, fail to make a payment, or fail to take the required classes.  You have the right to give up your discharge, but that does not prohibit the Trustee from continuing to administer your estate and sell your non-exempt belongings. 

Bankruptcy should only be filed if you are aware of the risks and benefits.   Most bankruptcy attorneys offer free one hour initial consultations, I’d urge you to call one in your area before deciding which chapter to file.

Are there alternatives to bankruptcy?

Yes.  You may qualify for:

Debt Management or Debt Settlement

Call today for a FREE CONSULTATION.

Written by Noah Bishop of Gresham Family & Bankruptcy Law

According to a report issued by the United States Federal Reserve System, as of July 2012:

• Total US credit card debt was over $793 BILLION DOLLARS!
• The average credit card debt per household was $15,799.
• One out of 4 stated that their personal debt had increase by 26% in the last 12 months!
• 76% of college students have credit cards.

I read an article about Survival in the Outdoors recently.  Interestingly, many of the lessons on how to survive in an emergency can be applied to how to survive with too much debt.

Step One: Don't Panic!

Stop and take a deep breath! Do not panic.  Do not feel ashamned that you are lost or in this prdicament.  Some of the best outdoors people in the world have become lost or disoriented,  and have run around in circles!

Slow down, relax and take a good look at your situation. There is a way out of this!

The same thing applies with having too much debt.  When you finally realize that you are in real trouble with your debt, DON'T PANIC!  Take a deep breath and realize that you are not the only one!

There is a way out of this!

Step Two: Evaluate your Circumstances

When lost or in an emergency situation, the next thing you must do is take stock of your circumstances:

• Do you have water, shelter, food, fire?
• Does anyone know where you are?
• What supplies or tools do you have?

Once get a really good look at your situation, you can start to take steps to get out of it!

The same thing applies with having too much debt:

Complete a BUDGET OR FINANCIAL WORKSHEET.

This is the only way you can really know:

• How much debt you really have?
• What are the total of the minimum payments you have to make?
• How much are all of the other household bills?
• Is there any discretionary or money left over at the end of the month?

Step Three:  Make a Plan

In a survival situation, once you calm down and get a good idea of your circumstances, you can devise a plan.

Make a shelter.  You can survive without food for weeks if necessary and many days without water, but if you are caught in the cold and/or rain, you could die from hypothremia within a few hours!

In other words, you have to survive to survive!

The same holds true for getting out of debt. The most important thing you can do is to formulate a plan. Depending on your unique circumstances, you may need qualify for:

A DEBT MANANGEMENT PROGRAM

This program allows you to have:

• One monthly payment
• All of your creditors are being paid each month
• Late fees and interest are reduced or eliminated
• Creditors stop calling!

To see if you qualify, --> CLICK HERE <--

But if you don't qualify for the Debt Management Program, you may qualify for a:

DEBT SETTLEMENT PROGRAM

This program allows you to have:

• One monthly payment that will work with your budget
• Your debts will be negotiated and settled for much less than the balances
• Creditor calls can be stopped
• Once all of your debts are settled, your credit report will improve

Bankruptcy

If neither of these programs work for you, then you may qualify for BANKRUPTCY.  Bankrupcty is a scarry word, but many times, it is the best and only solution.

There are various types of bankruptcies and you should consult a bankruptcy specialist to learn more about your bankruptcy options.

The worst thing you can do in a survival situation is to do nothing! The same thing applies to surviving with too much debt.

We can help point you in the right direction.

For a FREE Consultation, click here.