Record Bankruptcy Filings Reported in 2002, 92% where personal bankruptcy filings. | ||||
Bankruptcy: 2 Most Commonly Asked Questions(1) What exactly is bankruptcy?A proceeding in a federal court in which an insolvent debtor's assets are liquidated and the debtor is relieved of further liability. Chapter 7 of the Bankruptcy Reform Act deals with liquidation, while Chapter 11 deals with reorganization. You may view this U.S. Bankruptcy legislation in its entirety here.(2) If I file bankruptcy will it appear on credit reports?Yes, Bankruptcy is treated as a judgment and will be listed in credit reports for a period of up to 10 years. Bankruptcy is also a matter of public record… and can remain there for up to 20 years. It will appear when you apply for employment and even insurance!It's important to know that when filing bankruptcy all your debts are not discharged...... You may still be responsible for such debts as: Taxes, Education loans, Alimony and child support, new purchases such as luxury goods over $1,000.00 dollars and many more...... Debt Consolidation Program: Frequently Asked Questions(1) My credit card balances seem to be going nowhere every month but my credit report says I have good credit.Keeping your credit cards current is important but national statistics tell us that it takes over one year for every thousand dollars owed to pay creditors at a 20% Annual Percentage Rate on debts over $5000. Sooner or later, your debt will overcome your ability to pay your bills on time. Your credit ratings may eventually deteriorate due to debt-to-income ratios. That is, if you divide the amount you owe by the amount you make each year, you will get a rough idea of where you are. If you are over 50%, you are obviously in need of a debt consolidation.(2) How long does it take to pay off my credit card debts after debt consolidation?Most people
are able to get out of debt in 3 to 5 years after the interest rates on their
debts have been reduced under a debt consolidation
plan ... (3) Will debt consolidation affect my credit rating?It may be
that you have not missed payments but you still realize that you will never be
able to get out of debt by paying only the minimum amount every month. In this
case, you are in financial danger but your credit rating may still be very good.
Once you have begun a debt consolidation
program, Your credit report will show a remark such as "under
debt management" or "managed by
credit counseling"... (4) Is your debt consolidation program expensive?No. We charge
a small management fee which is included in your monthly payment ... (5) Do I need a credit report to consolidate debts?No. We work
with the creditors you SAY you owe .. however a
credit report may be useful.. (6) Why don't credit card companies have their own debt reduction programs for people like me?They do!
However, debt consolidation and debt counseling are
entirely different functions than what the credit card companies do
best. Credit card companies would prefer that people dealt with specialized debt
consolidation firms who take on the substantial burden of individual
repayment agreements and terms as well as all the attendant paperwork. For these
reasons, the credit card companies have special programs only for use by debt
consolidation companies.
Debt Consolidation Quotes Click Here,
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