Bankrupt in Debt Financially Ruined and Need to Sell Your House Fast?
The word 'bankrupt' is derived from the word 'bankruptcy' and means "to be financially ruined". When a person is bankrupt they can no longer pay their bills or meet financial obligations. This can be caused by numerous reasons. A chronic or life-threatening illness. Loss of employment. Divorce. Over-indulgence and careless spending. Lack of financial knowledge.
No one wants to be bankrupt. Not only is it stressful and worrisome, but there is also a stigma attached. People view you differently. Some will feel sorry for you. Others will think you are a failure. You may think you are a failure. But, the truth of the matter is, it doesn't matter what others think of you or even what you think of yourself. Instead, you need to focus on what options are available to help you overcome the challenges that caused you to become bankrupt in the first place.
If you are bankrupt, chances are you would benefit from credit counseling. Most credit counseling agencies charge a fee. Non-profit agencies generally use a sliding scale and base their fee on what you can afford to pay. With today's technology, credit counseling can be performed online, in the privacy of your own home. Credit counseling is also available in-person or via phone, making it a resource available to nearly anyone who needs it.
Credit counselors might recommend debt consolidation or debt settlement. With debt consolidation, the debtor obtains a loan and transfers all outstanding debts into the new account. Debt consolidation is generally reserved for homeowners. Using the equity in their home, debtors secure a second note using the real estate as collateral.
Debt settlement involves negotiating with creditors to reduce outstanding balances. Depending on the circumstances and amount of debt owed, credit counselors and debt settlement companies can sometimes slash debt in half.
Debt settlement is a good bankruptcy alternative; however, it can be detrimental to your credit history. People who are bankrupt generally don't have excellent credit ratings, but it is important to understand the consequences of engaging in debt settlement.
Several debt settlement options exist. First, you can attempt to negotiate creditor debts on your own. Create a reasonable repayment plan and determine how much you can offer them now. Experts recommend asking for a 50-percent reduction and having at least 25-percent of that amount as an upfront offer.
For example, if you owe $10, 000 in credit card debt, the goal is to negotiate the balance to $5,000. Offer a lump sum cash payment of $1250 and extend the remaining $3750 over a reasonable period of time. If creditors agree, you can pay off credit cards and potentially avoid going bankrupt.
In cases where creditors are unwilling to negotiate with you directly, you may require the services of a debt settlement company or attorney. Be certain to conduct research when using debt settlement companies. Unfortunately, there are unscrupulous people who cannot deliver what they offer. Additionally, you will be providing highly-sensitive information to them. Be certain they can be trusted with it.
If you are currently bankrupt and looking for a way out, I might be able to help. If you own real estate, promissory notes or land contracts, receive annuity payments or have probate inheritance, contact us to discuss options.
The Internet provides an abundance of information on personal finances, money management, credit counseling, debt management and bankruptcy alternatives. We invite you to begin your research by visiting our blog today. New articles are frequently added, so bookmark SimonVolkov.com and stop by often!