How To Get Rid Of Debt Without Filing Bankruptcy?

Get Rid Of Debt With Bankruptcy?

Bankruptcy, regardless of which filing you choose (7,11, 13), will not eliminate your financial problems. A bankruptcy filing will not protect assets secured in a loan, stop bills from child support payments, or give you a ¨fresh start¨ as bankruptcy lawyers like to advertise.  In fact your credit will be ruined for a minimum of 10 years, often longer.  Additionally, under new guidelines placed into law in 2005, bankruptcy will most likely not end your credit card bills or other lines of credit.  The liquidation bankruptcy filing, the chapter 7, is almost never legally applicable to individuals under the new law.  This means bankruptcy is no longer a clean slate, just another misstep in debt mismanagement.

Better Options For Getting Rid Of Your Debt

There are other options that will get rid of your debt effectively, not destroy your credit history like bankruptcy, and are still legal and in use.  These debt reduction options get rid of your debt by reducing or eliminating what you owe, while still showing your debts as paid off.

Debt Negotiation Or Debt Settlement Option

These strategies for ridding you of debt are quite similar to a certain degree. They both entail a detail study of your current debts, including all bills, lines of credit, student loans, etc.  They both involve you working directly with your creditors, yourself or using a credit counselor or debt consolidation service, to lower your outstanding debt amounts.  They both save you money on what you owe, up to and beyond 40% or more if done properly.  In debt negotiation you do this exact process and get your bills as low as possible with your creditors.  With you both agreeing to a lower amount you pay off your debt for less and move on.  With a debt consolidation the key difference is the payoff stage. Once your debts are negotiated down, you pay them off.  However you use a debt consolidation loan instead of cash you have on hand.  This loan you then pay off over time, but get rid of your current debt load immediately.

Related posts:

1. Does Bankruptcy Cover Government Debt?
2. How To Negotiate Debt With The Creditors?
3. How To Clear Debt
4. How To Begin Debt Negotiation
5. Can Creditors Take Your Possessions?