Get Out Of Debt

Are you considering bankruptcy? Does your situation seem desperate enough to warrant the use of bankruptcy to get out from under your debts? Even though you cannot file bankruptcy online you can download all the forms you will need to file for bankruptcy in the courts. You do need to make sure you are making the right decision and do not forget about these options.

Your first alternative is to use a credit counseling service. Sure you will have to swallow your pride and tell someone that you could not manage your finances, but they hear this everyday and many of them were in your situation at one point so they understand what you are going through. Plus they are there to help you and not criticize you.

They will help you put together a plan to get out of debt and move on with your life in a better way. They will also counsel you in credit and help you set up a manageable budget so you can live a better financial life.

Another alternative is to go to your priest or pastor and see if anybody within the church has volunteer to help the others with their finances. This is often the case and they are usually a financial advisor, accountant, or someone else that has been in debt and climbed out.

You can get the help you need without having to worry about filing bankruptcy online, but if you do decide to file bankruptcy you can do it without an attorney. You can download all the forms and they have instructions so you can file it yourself and save about 85% of what a bankruptcy attorney would cost you.

Consumers struggling with a high debt burden are reminded that research is required before enrolling in any debt relief program. While there are hundreds of legitimate companies that can help individuals eliminate their debt, there are also plenty of scams circulating within the industry which should be avoided. Before enrolling in any program it is important to investigate the company and the process they claim to use to eliminate debt. Here we are going to take a closer look at a potential scam that has cost some consumers hundreds or even thousands of dollars.

What is the National Debt Relief Program Scam?

It appears many consumers have received a letter in the mail claiming to be from the National Debt Relief Program. Victims of this scam have stated the letter at first glance appears to be from a government agency. Upon closer inspection it becomes clear the letter is not from a government agency but rather GHS Solutions, a debt settlement company. Jennifer Wallis is a Consumer Credit Counseling Service employee in central Oklahoma. She has clients who have received this letter which states the National Debt Relief Program can “reduce monthly payments by up to 50 percent”. Why is this letter considered a scam? Since the letter is designed to look like correspondence from a government agency, many consumers fail to realize it is actually from a debt settlement company. The information is misleading and many consumers who are desperate for a solution to their debt problem may enroll in a program that can have serious negative consequences.

GHS Solutions is a debt settlement company based in Delray Beach, Florida. The Better Business Bureau has given the company a F rating and reports 102 consumer complaints in the past three years. Of the 102 total complaints against the company, 88 are about the company agreeing to perform according to their contract.

GHS Solutions is not the only debt settlement company linked to the National Debt Relief Program scam. It appears consumers have also complained about a company named National Debt Relief and the program they offer to consumers. In this instance consumers have actually enrolled in the program and claim the company did not perform as promised. Clients claim National Debt Relief failed to stop collection calls and did not begin negotiating debt immediately. Other complaints claim the company misrepresents itself to appear like a government agency which leads consumers to believe they are working with a government program designed to assist individuals facing financial hardships.

It is important for all consumers to understand what type of debt relief program they are committing to before moving forward. Debt settlement is a legal process where individuals or companies hired on their behalf, negotiate with creditors to reduce delinquent balances in order to eliminate debt. Anyone considering this process must thoroughly research both the method and any company they consider hiring. There are several risks involved in the process however it can be the best option for people facing a serious financial hardship who would otherwise have to look toward bankruptcy to address their debt situation. It is unfortunate that some debt settlement companies continue to mislead or misrepresent themselves in order to enroll clients in their programs. Consumers are urged to carefully read any correspondence as well as contracts prior to enrolling in a debt settlement program to avoid confusion and disappointment down the road.

What can a credit debt counseling program do for you? Amid the oft misleading ads, hype and outright scams, it is important for you to know the truth about credit counseling before diving in.

A credit counseling program may be just the thing you need to begin your journey to being debt-free. And a journey it is. You see, there is no easy solution or quick fix to debt problems. Anyone who tells you otherwise may not have your best interests in mind.

What a good credit counseling agency does is look at your case from a professional perspective and offer you options for resolving your debt issues.

You are expected to provide all details about your finances including credit, debt and income, as well as your short-term and long-term personal financial goals. This is in order to provide you with the best possible option(s) to suit your situation and lifestyle.

The first thing you need to do is find a reputable credit counseling service. This can be challenging as scam companies are galore. But if you know what to look for you can narrow down your search and make the task much easier.

It is advisable to go for a nonprofit agency. But note also that some so-called nonprofit agencies have been caught in crooked practices, so you should not stop here.

Check with the National Foundation for Credit Counseling (NFCC) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA) as they have a list of reputable nonprofit agencies you can choose from.

Here are some red flags to look out for when shopping for a credit debt counseling program;

1. Upfront fees. Most legitimate credit counseling agencies will not ask for a fee before talking to you.

2. Claims to make you debt free today. It takes time, even with the best help in the world.

3. Erase, or cut your debts by 50% or more. A reputable debt counseling service will expect you to meet your obligations as this is the honorable thing to do. If an agency promises to erase or cut your debts by a huge percentage, this is likely to be a debt settlement plan which can potentially cause you other problems including tax problems.

4. Charges a high monthly fee based on your total debt. If you enroll in a continuous program such as debt consolidation and/or educational program, you can expect a monthly fee. But this should be a flat rate that you should know upfront.

5. If the agency’s employees work on commission, run!

It should also be pointed out that a credit debt counseling program can impact on your ability to obtain new credit. Typically, it will show on your credit report that you are in counseling. Some creditors just will not want work to with you if you are in counseling.

Also, though your counselor will negotiate for lower interest rates on your behalf, some rates could actually go up. If you choose to take the debt consolidation route, you will be required to close some accounts which will like negatively affect your credit score.

Are you considering paying a lawyer to help you file bankruptcy? Do you know how to read bankruptcy forms at all? There are many ways to get out of debt and one of them is to file for bankruptcy by hiring an attorney to help you do so. The funny thing is that you could do it yourself, pay less for it, or you can go ahead and choose a better option. Here is what you should know.

If you want to file bankruptcy, then avoid the huge lawyer fees and do it yourself. Every government form has instructions that come with it and as long as you follow those instructions you will be just fine. You can even hop online and ask a few questions in the forums if you cannot figure something out, but the instructions are there for you to follow and all you have to do it follow them.

This will save you the $1,000 to $5,000 a lawyer will ask you to pay for your bankruptcy. Seriously, you cannot even afford your bills, so how in the world are you going to afford your bankruptcy attorney?

Another option is a credit counseling service. These not for profit organizations can help you get out of debt for less than a bankruptcy would cost you and they will do so without putting an ugly bankruptcy on your credit report.

On top of that they will also counsel you in how to budget and how to manage your credit so that you do not end up in the same situation again. The bottom line is that bankruptcy is bad, but you do not need a lawyer to read the directions on the bankruptcy forms to you. You can do it yourself or contact a credit counseling service so that you can avoid it all together.

If you ever find yourself in need of bankruptcy services, you need to know what services are available and what they have to offer you. You may find that credit counseling and a lawyer will help your situation. In all, bankruptcy services offer you the ability to talk and think about alternatives before using a lawyer to file for bankruptcy.

Credit Counseling Services

If you find yourself in debt and have the phone keeps ringing, look for a credit counseling service to determine if there is an alternative that may work better for you than filing for bankruptcy. They will guide you through your finances and see if there might be a way to pay back the debt without putting you in poverty.

Two types of credit counseling services exist, the pay for and the non-profit. The services are the same, but you want to choose the one right for your debt problem. Because you are already in debt, you might consider a non-profit credit counseling service. Before you file for bankruptcy, you need to have a discussion with a credit counselor to determine the amount of debt and other solutions before taking the next big step.

Proceeding with Bankruptcy

When you decide with a counselor to proceed to bankruptcy, you will need the bankruptcy services of a qualified lawyer. Many bankruptcy lawyers have a full team of counselors, and paralegals to file the necessary paperwork thus reducing the cost of your lawyer fees. You cannot include your lawyer fees in a bankruptcy, the money is needed up front.

Pre-filling services are just as important as the credit counseling you have gone through by now. You have to decide how to stop any foreclosures, find a money-managing program along with debt reduction and credit repair. The bankruptcy services will help with all these needs. If by chance a business is affected, you will need help determining to liquidate the assets or do some type of restructuring of the business.

Chapter 7 or Chapter 13

What should you file under? Bankruptcy services will help you determine what chapter to file under, either chapter 7 or chapter 13. In some cases, but rare, people may file under chapter 12 only if you have fishing or farming business run by a family as a family business.

In order to file for chapter 7, you need to meet the guidelines. The bankruptcy services will help determine which one you qualify for before filing. There are advantages and disadvantages to filing for chapter 7 verses a chapter 13. You need to have all the paperwork filled out correctly before submitting to the courts. This includes all documentation and filing fees associated with the bankruptcy proceedings.

What the Service Should Do

o The service will help you work out an affordable repayment plan.

o They help you work out an after bankruptcy plan to afford for comfortable living with the repayment plan in mind.

o They help you determine what assets you can retain and what will have to be given up.

With all the help and counseling you receive from bankruptcy services, you can rest assured things will get better. Whether you file or work out a payment plan, you will find their services very useful. They are there for you and will help to work out the best plan of action for your budget and lifestyle.

If you need the bankruptcy services, look for one that will offer a complete service instead of jumping around from counselor to lawyer to processors. This helps make things easier on you and all the information stays in one place.

Bankruptcy does not mean the end of good credit when the service works with you to clean your credit up and puts you back on the right track. Take all your bills and debts along to a counselor to ensure that no unexpected things pop up after setting up your repayment plan and living expenses.