Is it Time for You to Ask For Debt Settlement?
Ask For Debt Settlement
On April 12, 2009, the government enacted the federal stimulus plan that extended a federal bailout for the largest financial institutions. Since then, the US has struggled through an extended period of slow growth (the Obama administration initially predicted 1.9% economic growth in 2009, and that number has been coming up as well, according to the Wall Street Journal). 개인회생 절차
At this point, each financial institution that is not windows dressing is on the verge of failure. Many of these businesses are only now starting to recover financially, meaning that they need to collect more money to keep their doors open. They have substantial sums of money on deposit with the federal government, and if they don’t get the money, they aren’t going to be able to stay competitive indefinitely, but if they can get some of it, and they can keep their doors open, they will have no problem staying afloat. This is why it is important, rather than asking for a government bailout, to ask for debt relief.
When a financial institution refers to its debt in writing, that debt is considered an unsecured debt. This means that the institution can only go after your house. A mortgage is considered secured debt, because if the payments aren’t made, there is an intent to realize the property (which would mean that you would lose your home), and they can only take personal assets (your house, your car, and other possessions). If a bank were to take your house, they could force you to move out and sell the house, and then when they look at what is left, they would take that remaining amount (after taking legal action to obtain a judgment) and divide it amongst the creditors. This is something that you would never, ever do because it would legally destroy your credit for a long time. Ask For Debt Settlement
A bankruptcy lawyer would tell a consumer to prepare for the possibility that homes can be seized as well as to file bankruptcy, and to hire an attorney that has direct experience in filing for bankruptcy. For example, attorney’s would know that there are state and federal laws that protect an individual from losing their home, their car, and other personal possessions. Ask For Debt Settlement
For many people, when they begin thinking about filing for bankruptcy, they need to decide if this is a financial decision that they really need to make. A bankruptcy lawyer can tell you whether or not bankruptcy is appropriate for your situation. The reason why an attorney would tell an individual that filing bankruptcy is not necessary is because the new bankruptcy laws have made clear that debtors must put forth higher than normal financial and personal financial liability to qualify for a chapter 7 bankruptcy.
The remaining options for many people are various resolution programs that can provide resolution to their debts but just doesn’t seem to be working for many families today. A recent New York study showed that about 25% of the individuals that sought out help from a credit counsel group were able to make their payments to their debts, and about 57% were able to do so. Ask For Debt Settlement
When a person looks into options for dealing with their overwhelming debt load, a wise move for them to do, is to consult with an attorney that they feel comfortable with or call a nonprofit law center, or use a budgeting service.