One of the major challenges being faced by debtors today is the settlement of debts without resorting to filing bankruptcy. Though many feel that filing for bankruptcy could protect them from further financial damages, filing for one has got disadvantages of its own.
The current amendments of the Law make it difficult for a debtor to file for a Chapter 7 type bankruptcy. If the debtor files for Chapter 13 bankruptcy, the debtor may end up paying 25-75% of the debts. In addition to these immediate losses, the debtor is also afflicted with some long-term damages. A history of bankruptcy in one's financial profile is bound to have negative effects. It would be difficult for the individual to rebuild financially. The Debtor's credit line gets impaired as financial houses would hesitate to provide loans and credit card companies wouldn't be so forthcoming with their offers for credit cards. It is also imperative by Law to mention a history of bankruptcy, which makes it difficult while applying for a job or personal loan.
Debt settlement has proved to be a good legal alternative for many. But how can a Debt Settlement company help you? Once a debtor becomes a client of such a company, the company starts communicating with the client's creditors on his behalf. It negotiates with them to bring down the payable amount. Once an amount that is acceptable to both the client and creditor is arrived at, the client pays this agreed amount to the creditor, which makes him debt-free. However; it is important to assess the capability and trustworthiness of a debt settlement company before seeking its services.
The current amendments of the Law make it difficult for a debtor to file for a Chapter 7 type bankruptcy. If the debtor files for Chapter 13 bankruptcy, the debtor may end up paying 25-75% of the debts. In addition to these immediate losses, the debtor is also afflicted with some long-term damages. A history of bankruptcy in one's financial profile is bound to have negative effects. It would be difficult for the individual to rebuild financially. The Debtor's credit line gets impaired as financial houses would hesitate to provide loans and credit card companies wouldn't be so forthcoming with their offers for credit cards. It is also imperative by Law to mention a history of bankruptcy, which makes it difficult while applying for a job or personal loan.
Debt settlement has proved to be a good legal alternative for many. But how can a Debt Settlement company help you? Once a debtor becomes a client of such a company, the company starts communicating with the client's creditors on his behalf. It negotiates with them to bring down the payable amount. Once an amount that is acceptable to both the client and creditor is arrived at, the client pays this agreed amount to the creditor, which makes him debt-free. However; it is important to assess the capability and trustworthiness of a debt settlement company before seeking its services.
