Bankruptcy should only be a last resort solution because it will remain on your credit report for 10 years, almost no lender will even consider you as a borrower for at least 2 years and if you are lucky enough to get a loan after going through a bankruptcy, the interest rates, fees and costs will be a lot higher than in other circumstances.
Bankruptcy no longer so easy
A recent modification to the law that regulates bankruptcy has made the bankruptcy process even more costly and difficult. It is not longer as easy as it was to get all your debts dismissed and get a fresh start. Chances are that you’ll be required to commit to repay some debt in a period of time agreed with the court.
Thus it makes no sense to resort to such an extreme solution to your debt problems when you can get some aid in negotiating with your creditors and avoid costly legal fees that would add up to your debt. There are debt consolidation agencies out there that can reduce your debt significantly and help you avoid the consequences of bankruptcy.
http://www.content.onlypunjab.com/Article/Avoid-Bankruptcy-with-Debt-Consolidation-/4200320092003230582
Debt Consolidation agencies
When you contact a debt consolidation agency you’ll be assigned an agent with a wide experience in negotiating with creditors that will interview you first in order to analyze your case. He will ask you questions regarding your assets, your income, your debt, your job, your expenses, etc. You will probably be required to provide documentation regarding these subjects too.
Then, he will work with you in order to arrange a reasonable budget leaving your debt repayments out so as to see what your essential expenses are. He will then arrange meetings with your creditors and negotiate with them new repayment programs.
This will have many effects: For starters, debt will stop accumulating. The amount of money you spend on interests will be considerably reduced. The loan terms will be extended and you may also be able to get a reduction on your debts’ principals. Sometimes by means of debt consolidation people can get a reduction on their debt of up to 65%.
Repayment
Once the consolidation process has ended, you’ll have to start repaying your debt. There are different ways this can be arranged: If after debt negotiation, you’ve applied for a debt consolidation loan and been approved, then you’ll only have to make a single payment towards cancellation of your consolidation loan.
However, if you didn’t apply for a consolidation loan, sometimes you can also get a single payment because some credit agencies agree with creditors as part of the negotiation process that they’ll collect your payments and deliver the money to the creditors. Thus, you make a single monthly payment to the credit agency and the agency takes care of repaying all of your debt.
http://www.content.onlypunjab.com/Article/Avoid-Bankruptcy-with-Debt-Consolidation-/4200320092003230582
