Debt Management HelpDo you struggle with the bills every month? No matter how you juggle your finances there just doesn`t seem to be enough coppers in the bank to pay your creditors. You are not on your own. The UK has been spiraling further into debt for a decade and a large number of families find themselves in your position. Their incomings can`t compete with their outgoings and this can prove to have a detrimental effect on family life. There are options available to people that find themselves in extreme financial difficulty. They can seek
Debt Management Helpthrough financial firms who can provide plans that are suitable for each individual customer. If you have explored all other options,
Debt Management Helpcould arrange for you to be put on a plan where you`ll pay one fixed affordable monthly fee. They`ll deal with your creditors on your behalf and you`ll make monthly payments to the debt management firm. Once a structured management plan is in place you`ll be able to cope with your regular outgoings and steer a steady path to greater control over your finances in the future. Seek
Debt Management Helpduring these difficult times and you`ll see light at the end of the tunnel for the first time in ages.
Of course, bankruptcy is your last resort. It is tough but provides a legal remedy for your financial situation.
Bankruptcy is a 3-step process:
- You must first file in federal or state court saying you are ?insolvent? ? meaning you have no cash or assets (things you can sell) to pay your bills.
- You have to arrange a repayment plan with creditors and the court.
- You ?discharge? ? meaning settle your debts with creditors for usually a lower amount than the original bill. This gives the creditors some of their money back.
Pros and Cons:
Pros:
- Legal protection from creditors
- Takes care of most of your debt
- You may get to keep your home
- May stop financial ruin
- Enables a fresh start
Cons:
- Bad Credit
- Still have to pay some debt
- Have to go to court
- May loose your assets
- Loss of privacy (usually they print your bankruptcy in the paper)
What if I don?t file bankruptcy ? what could happen?
Bad credit rating ? making it hard to ever borrow again
Creditors may sell your property you put up as collateral ? like your car or house
Lawsuit ? and if you lose, you?d have all the legal costs from both sides plus your bills
Garnishment ? your wages could be garnished up to 10% to pay creditors
Types of Bankruptcy
Chapter 7 ? straight bankruptcy
This is when you sell everything and pay back creditors. You can keep your house, but must pay taxes, alimony, fines, and student loans.
Chapter 13
This allows you to keep your stuff, but the court appoints a trustee to help you with your wages and pay back your creditors usually within a 3 to 5 year window.
Hopefully, this information has helped your situation, but please, it is always smart and sometimes required by law, to consult with an attorney before filing.
