Wednesday, November 25, 2009

Debt Relief without Filing Bankruptcy

If you are greatly pressured by an overwhelming debt, which beyond your financial capability to resolve it, does it mean bankruptcy filing is the only option for you to get a debt relief?

Most often, debt counselors will not advise debtors to file a bankruptcy unless there is no way out of debt. The survey results found that 90% of debtors who go for this option do have other options, they just either don't know or they don't really explore for available debt relief solutions before deciding to go for a bankruptcy filing. If you are one more step toward a bankruptcy filing, hold-on for a moment because you might be able to get rid of debt with a better option. Don't ever choose to go for bankruptcy filing before you explore the available options.

If you are about to file a bankruptcy, it is no harm to explore more options since there is no other option as bad as this debt solution. The very first step you might need to take is to approach a credit counseling service. Most of credit counseling services are free of charge in term of providing counseling services. When you approach a credit counseling agency, a counselor will be assigned to understand your financial situation and your debt problem before they propose a solution that best fit your condition. Most probably you will be proposed with a debt management plan that may involve a monthly fee if your financial condition can fit into a debt management program. This means you have a solution that is better than filing a bankruptcy.

Other than credit counseling service, you may also approach a debt negotiation company to help you negotiate for a settlement. But, this option may require a lump-sum of money to be paid for the agreed settlement amount. So, you are able to prepare the money for settlement. Be aware that the fee you need to pay for the service of negotiation might be rather high, so make sure you get the negotiator to reduce your debt as low as possible. Some companies may help you to cut off 40% to 60% of your debt if you are able to pay a lump-sum of money to your creditors and get your debt erased. Therefore, debt negotiation for settlement should be a better option if you can afford to pay the negotiation fee and the settlement amount.

You will be a better situation to get your debt problem resolved if you have asset that can be pledged for a secure loan. Although paying off your debt with a loan does not mean you are free from debt, you will be able to relax the overwhelming and high pressure condition to a more comfortable level. For example, if you own a house, then you can apply for a consolidation loan or refinancing it to cash out the money and pay off your debt. Be aware that by securing a loan with an asset, you are putting your asset at risk because it will be foreclosed if you default the loan payments. Therefore, you need to make sure you pay the loan on-time during the repayment period. If you have asset that can be used to secure a loan, you can always get rid of debt without bankruptcy, what you need to do is to make sure you pay the loan on-tine so that you won't get yourself into bad debt again.


There are always other options other than bankruptcy filing to resolve a debt problem. You should always explore the available options to get rid of debt and avoid filing a bankruptcy with the best effort.

Visit Henry Davidson at for more information and resources on how to manage your money properly. If you are in debt, then visit the site to find out how to be debt free without bankruptcy filing.

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Trying to Find Low Costing Bankruptcy Attorney?

After coming to a decision that they need a bankruptcy attorney, lots of folks are not certain where to begin. Used to be, you would thumb through the phone book and look all through ad after ad that listed the law firm's name with a prim photo and the region and state in which they practice. By way of the growing popularity of the internet, a lot of people now begin with an online search. However, before you begin entering "low cost bankruptcy attorney in Denver, CO," there might be a small number of factors you should think about.

You will receive the value of service for which you pay. The first lawyer that comes up in your exploration might very well be the cheapest lawyer in your region, however they might also not be ready or knowledgeable enough to manage your case appropriately. A lawyer who charges very little is not anticipating to do much work.

Firstly, the costs charged by bankruptcy lawyers are controlled by the bankruptcy court. Nearly all bankruptcy cases involve the same amount of effort and time. So, it only makes sense that the majority of them would charge a comparable hourly rate. Try to find a lawyer who is honest and open with you concerning the cost at the very start instead of one who waits until it's too late to inform you that you have an unexpected fee at the conclusion of your case.

Secondly, consider what's truly important. Ask yourself this: If you required open heart surgery, would you be looking for the cheapest physician? More likely, you would be in search of the best rather than the cheapest. Why would you deal with your bankruptcy any differently?

Thirdly, scrutinize what other sort of assistance your lawyer is ready to give you. Do they provide support after you file your case? There are specific errors that can be made following a bankruptcy that might leave you in a similar place as you began-or worse.

There are mistakes that you can make when in search of a suitable Denver bankruptcy attorney to manage your case. There are individuals every day who go to another attorney after their first one did not handle their case properly or was not up front with them about the actual cost of their bankruptcy. You should keep this information in mind to make sure you have found the proper bankruptcy attorney for your case. Simply do the right investigation and bear the correct facts in mind and you will surely find the ideal attorney for your case.

Monday, November 16, 2009

What to Know about Bankruptcy

Bankruptcy is the name given to a process where a person legally declares himself or his business unable to pay outstanding debts. Depending upon the type of bankruptcy filed, one meets with a judge in order to determine a payment schedule, or for having a legal bankruptcy discharge most if not all debts.

Bankruptcy may also be declare by the businesses , which either means that the business will close, or that the business will continue to operate but with reduced payments to debtors. Each country has its own bankruptcy designations, but here I will explain you the most common types of bankruptcy in the US.

3 Forms of Bankruptcy

There are three forms of bankruptcy for the individual or the married or domestic partner couple, these are called “Chapters.” The most common form filed by spouses or individuals is Chapter 7 bankruptcy. Chapter 12 bankruptcy is restricted to those people who are family farmers or fisherman. Chapter 13 bankruptcy may also be filed by the individuals or married couples, but this is rare.

Bankruptcy for Business

The two common forms of bankruptcy that are utilized for businesses, are Chapter 7 and Chapter 11 bankruptcy. Less common is that an individual or business might file under Chapter 15 bankruptcy. This bankruptcy involves the clearing of international debts. If a bankruptcy must be declared by an agency of the state, such as a city then they file Chapter 9 which is also called municipal bankruptcy.

Chapter 7 bankruptcy

Either individuals or businesses that want a total clean slate tends to use chapter 7 bankruptcy. A business that files Chapter 7 bankruptcy as a result of that has to close their business. Chapter 7 bankruptcy for the individual, means that the courts declare that the person is unable to pay debts incurred, and almost all debts are then void.

chapter 7 bankruptcy

When filing Chapter 7 bankruptcy all assets must be declared. Other assets like second houses, collectibles, and additional vehicles are liquidated in order to pay debts. Most who file Chapter 7 bankruptcy do because they have very little left what they can lose. Once a judge approves the bankruptcy filing, then virtually all debts, like those that are owed to credit card companies and doctors or hospitals are cleared and that person is given a clean slate.

Chapter 13 bankruptcy

Those individuals file chapter 13 bankruptcy who do own a great deal of property or assets, but find that their income cannot cover the exorbitant payments on debts that are own by them.


In this form, the debt is restructured, and in some cases they are reduced so that people retain their assets but they have reasonable payments which can be made by them to debtors. Generally the court-ordered payments must be made on time and regularly so that the seizure of assets might be avoided.

Chapter 11 bankruptcy

Businesses file a similar form of bankruptcy that is referred to as chapter 11 bankruptcy. Some or part of the business’ debt may be cleared, and the payment plans are restructured. The purpose of chapter 11 bankruptcy is to reorganize the debt so that the business can continue to operate.

chapter 11 bankruptcy

All forms of Denver bankruptcy are a costly means of gaining debt relief. There is a reduction in the credit score of both individuals and businesses after a bankruptcy. Individual bankruptcy remains on one’s credit report for almost 10 years, due to which it could be difficult and costly for that person to get approved for new cars, homes, or credit cards.