how is debt consolidation different ?

Hi Smith

Welcome to the debt consolidationcare forum, wishing you and your family a very happy Christmas.

The objective of bankruptcy is to absolve oneself of debts altogether. This financial strategy, however, has serious and long-term drawbacks, which may negatively affect your life for decades. For example, applying for life insurance, purchasing a business, buying a home, applying for a job, etc., can all be negatively affected by a prior bankruptcy. With debt consolidation, an individual is committed to repaying his/her obligations . Thus, one can repair bad credit, maintain a good credit rating and return to a debt free life within a short period of time.

Regards,
Simon

I was in my early twenties when I filed for bankruptcy over 3 years ago. My lawyer indicated that it would do a lot of damage, but that eventually my credit would be restored.

Since the bankruptcy, I have purchased the car that I have always wanted, and have received a credit card and other credit card offers. I realized that before my bankruptcy I was not approved for anything, therefore after the bankruptcy I wouldnt be missing anything. I soon learned after my bankruptcy that if you can't save enough money to purchase it, or find a economical way to purchase it, then it is not worth the trouble.

debt consolidation is excellent for paying obligations that are not top priority at the present time, ie (medical bills, old electric companies, and previous cell phone companies, etc) and it is a way to keep your credit looking good. Bankruptcy has not caused me to loose the career of my dreams, you may have to sit down and discuss your credit history, but these employers are more concerned with the people who have not declared bankruptcy and are delinquent on $10,000+ worth of debt versus and person who filed a bankruptcy petition a few years before and since then have been paying their debts promptly. Now to you, which candidate is more like to launder money to pay off debts??? Exactly...

Use your credit wisely, and decide to pay your bills when you are financially able, and willing to take control of your life. Debt Consolidation Care can help!

Hi,

Welcome to the debt consolidation forum. The consequences of enrolling into debt consolidation is a lot different from that of filing bankruptcy.

On filing a bankruptcy you have to face a lot of problems. You might not only have to liquidate your assets but also have to move according to the verdict, the creditor gives you in the repayment scheme. In debt consolidation your debt burdens are handled by the debt consultant and your debt amount gets reduced to 40% - 60%. The late fees and taxes are also deducted. A new payment scheme is designed and you have to pay back in easy monthly installments. Moreover debt consolidation does not affect your credit score whereas if you file bankruptcy your credit record will show it for the coming ten years. In filing a bankruptcy you have to face the legal hassles whereas in debt consolidation all you have to do is get yourself registered with a reputed debt consolidation firm. Today debt consolidation is the most popular method to eliminate your debt problems.

Looking forward to your active participation in the forum and hope you will share your experiences and knowledge with the other members.

Regards,
Jason

Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of
the bankruptcy court.
Consumer Bankruptcy usually covered under Chapter 7 and 13
Chapter 7 (straight bankruptcy) involves liquidation of all assets that are not exempt in your state.
Chapter 13 (reorganization) allows debtors to keep property which they might otherwise lose, such as a mortgaged house or car.
Whereas debt consolidation is a good substitute of bankruptcy. Because under this scheme , Debt consolidating Firm will buy out all the debts from debtors at and negotiate with creditor directly. Your total debt burden will be reduced from 40%-60% and moreover you don't have to face the creditor to repay your debt as well. But if you go for bankruptcy it will affect your credit score in future and bad reputation in money market.

Regards,
Diago

Is the following statement always correct?
" But if you go for bankruptcy it will affect your credit score in future and bad reputation in money market."

Lets say I file bankruptcy in the USA and them move out to Mexico, will the Bankruptcy affect me in Mexico?

Its effect is only in the USA right? If you are planning to leave the country for 7 years or more, then debt consolidation and debt settlement are very bad choices because bankruptcy is free.

You can't Run away from your credit report.

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can debt consolidation help keep your house even if you are well in arrears???

Lam, do you mean putting the home loans in the consolidation plan? debt consolidation combines all unsecured debts only into one payment plan. Most companies don't include secured debts in the program.