Thinking about filing for bankruptcy. Would debt settlement or debt negotiation be a better option?

Thinking about filing for bankruptcy. Would debt settlement or debt negotiation be a better option?

Paul Ritz 521 views 2016-02-25

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Title Thinking about filing for bankruptcy. Would debt settlement or debt negotiation be a better option?
Duration 02:25
Source YouTube
Tags debt relief, debt settlement, bankruptcy, debt settlement or bankruptcy, debt negotiation or bankruptcy

Q. I've been thinking about filing for bankruptcy. Would debt settlement or debt negotiation be a better option? A. There is no one size fits all debt relief program that will work for everyone. This goes for debt settlement, credit counseling, debt consolidation loans and even bankruptcy. You should consider all your debt relief options before choosing one. If you file for chapter 7 bankruptcy you will get all or most all of your unsecured debts discharged typically in less than 6 months. This typically includes personal loans, personal lines of credit, credit cards, old cell phone bills and medical debts. Chapter 13 bankruptcy is a repayment plan that requires you to pay back some of what you owe. It has about a 33% success rate according to the Department of Justice. So if you cannot qualify for chapter 7 you should take a good look at debt negotiation. You have a better chance of successfully resolving your debt with debt negotiation than chapter 13. You will have a very hard time getting new credit for two to three years after your bankruptcy filing. When you are able to get new credit it will be high interest/low balance credit. This means it will have a low balance of maybe $500 or less and an interest rate of 19% or even higher. Your insurance premiums will likely go up and you may find it hard to rent a house or an apartment for a couple years. A bankruptcy will stay in your personal file for the rest of your life. Since most employers now routinely check their applicants’ credit histories the bankruptcy could actually keep you from getting a good job. Debt negotiation will also impact your credit score though not as severely as a bankruptcy filing. This is because your debts will be reported to the credit bureaus as "partial payment accepted," "settled for less than full balance" or "settlement." This information, too, will stay in your credit report for seven years. The effect will diminish over time though. Once all your debts have been resolved you will be able to get new credit faster since you will have no debt and a good debt to income ratio. If you’re thinking about filing bankruptcy, visit https://www.nationaldebtrelief.com to learn about all your debt relief options first from a top rated and BBB accredited company.

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