Sunday, December 5, 2010

Bankruptcy Legal Advice - How To Avoid Bankruptcy And Settle Your Debts Quickly

Bankruptcy filing means a massacre. Once you file for bankruptcy, there will be numerous problems that you will face. Getting out of those problems will not be easy and rather honestly speaking you cannot get out of those problems. The problems that you are going to face once you file for bankruptcy are mentioned below:

* You will lose credit score.
* You will lose your credibility.
* The bankruptcy report shows up on the credit history for 7-10 years.
* For 7-10 years you will not get any new loans.
* After 7-10 years, you will become sub-prime consumer and end up paying more
interest for any loan that you take compared to other people.

How to avoid bankruptcy?

* Spend less. It means, do not overspend. Use your credit cards wisely and use them wisely only when you need them.

* Talk to credit counselors and know about the alternatives. Venture into those alternatives by assessing your finances and your debts.

* If required, go for debt settlement and use professional help for negotiating with your creditors.

How to quickly settle your debts?

* Use the method of debt settlement. Make sure that all your unsecured debts add up to at least $10k. Anything less will not help you to qualify for settlement. Consolidate all the debts to one place to reduce cost of negotiation and time required for settlement.

* Hire a professional debt settlement company. Follow the advices given by the negotiator. Go delinquent.

* The negotiator will wait until the debt is sold to a collection agency for 20-30 cents per dollar.

* The negotiator will contact the lender and offer 30-50 cents per dollar.

* The lender will agree and eliminate at least 50% of the debt that you have.

* Sign a new agreement with the creditor.

* Pay off the remaining amount of the dues according to the new terms and conditions.

* This entire process will take 1-3 years to complete and is the fastest available method.

This is how you avoid bankruptcy and quickly settle credit card debts. But, when you are out of your debts, make it a point that you are no longer using your credit cards unwisely and limiting your expenses only to the necessary stuff! Act wise, be safe!

With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle. Check out the following link to locate legitimate debt relief companies in your state for free help.



By: Frank Bernard
Debt Reduction Help http://www.debtreductionexpert.com/

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