Debt
Date: Wed, 04/21/2010 - 01:33
There are a variety of options depending on your circumstances a
There are a variety of options depending on your circumstances and all have their advantages. Debt Management and Debt Consolidation allow you to pay off your debts over time.
Debt Settlement is where you negotiate lower payments with your creditors because they have agreed to accept a portion of your debt rather than the full amount.
Bankruptcy Chapter 13 is a judicial debt repayment plan where the court takes a look at your assets and determines what you can pay.
Chapter 7 is another judicial procedure where your debts are wiped out, but is difficult to qualify for because the courts take a look at your income and if you cannot pay 25% of your debt as well as necessities or your income is below the median income of a family your size for your state as determined by the IRS and the most recent Census then you can file for Chapter 7.
Chapter 7 is not difficult to qualify for...you just have to mee
Chapter 7 is not difficult to qualify for...you just have to meet the or be below certain income standards. So if you are overwhelmed with debt, it is a good option if you cannot make the payments for a settlement or debt management plan.
For the average joe blow, nothing is sold for chapter 13....they are just set up on the wage earner plan.
All of the different options will tank your credit. The best way to become debt free is to increase your income and get your debt paid off. Use credit minimally or not at all.
Quote:
Debt Settlement is where you negotiate lower payments with your creditors |
.Obviously OVLG is clueless as to what a settlement is. A settlement is where you pay off your creditors in a one time lump sum or over 3-4 payments for a lesser amount. The only way you get payments per se is if you are paying a debt settlement company (and their associated fees).
