Chicago, IL (PRWEB) August 20, 2009
As consumers nationwide continue to grapple with the recession, unemployment, and plummeting home values, personal bankruptcy filings have reached an all-time high this year. Consumers may find themselves with many questions as to how to file bankruptcy. In response to this, Totaldebtrelief.net announces to consumers that better options exist for reducing and eliminating personal debt without the harsh and long-lasting consequences of filing for personal bankruptcy.
Recent statistics show that both chapter 7 bankruptcy and chapter 13 bankruptcy have unwisely been the go-to plan for consumers strapped with mountains of debt, yet there are alternatives. To begin with under the new law, before a consumer overburdened with debt can file a bankruptcy petition they must attend a full 6 months of consumer credit counseling. During this time the consumer is on their own, falling deeper into debt and despair.
If a consumer is attempting to file bankruptcy to stall or prevent a home foreclosure while they reorganize their finances, they could actually lose their home during the required 6 month time period of credit counseling. Additionally, the repercussions of filing for bankruptcy are damning.
These include: the bankruptcy remaining on the filer's credit record for up to 10 years, the inability to obtain future credit or loans during this time period (home loan, car loan or other), being required to pay deposits for utilities, being denied an apartment rental, and quite possibly being passed over for a job, as more and more employers are performing credit checks as part of their routine job applicant screening process.
And filing for bankruptcy isn't cheap by any means - typically costing $2,300 - $4,300 depending on whether a chapter 7 or chapter 13 is filed.
Totaldebtrelief.net announces to consumers the following debt relief options:
1) Debt settlement: This involves a debt arbitrator aggressively negotiating on behalf of the consumer with their creditors to drastically reduce the total amount owed, in most cases by up to 50% or more.
2) Debt consolidation: This involves combining multiple loan payments into one smaller, more manageable monthly payment. This may or may not involve taking out a new loan at a lower interest rate than the multiple existing loans.
3) Credit counseling: Consumers who have a debt load which has not yet reached critical stage can be educated on the ways and means to manage and reduce their debt over time to prevent a serious financial crisis from occurring.
Totaldebtrelief.net offers consumers a free debt evaluation. They can take advantage of this offer at http://www.totaldebtrelief.net
Totaldebtrelief.net has been a leader in the debt relief field for over 5 years. Their debt management professionals educate consumers on all the options available to get out of debt. Totaldebtrelief.net helps consumers make the most informed decision possible so that they may get their financial lives back on track.