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Consumers are advised to get credit counseling before filing for bankruptcy.
New York, NY (PRWEB) August 03, 2013
The leading debt settlement company in the country provides some relevant information for consumers who are left with no choice but to file for bankruptcy.
On July 30, National Debt Relief published the article entitled "What To Do When Bankruptcy Is The Only Option." The article focuses on relevant information that the company believes the consumer will need to make bankruptcy effective.
The article discusses how financial experts usually discourage consumers to use this option for debt relief. The repercussions are just too devastating for the consumer - especially on their credit score. Instead of bankruptcy, experts advise consumers to seek out the other options to get out of debt.
However, the article also concedes that there are signs that show there is no other choice but to opt for bankruptcy.
1. No income or having so little that can barely pay for basic needs.
2. Credit cards are being used to pay for basic needs and the consumer has no clue how to pay for it.
3. Most or all payments are already late.
4. Medical bills are piling up and there are more to be expected.
5. The consumer’s financial situation shows no signs of improving soon.
Consumers are advised to get credit counseling before filing for bankruptcy. Not only is it a requirement, it will also help them get professional advice as to the best option to get debt relief.
National Debt Relief also provide consumers with the two bankruptcy options that they are most likely going to end up with. As required by the law, each bankruptcy filer will have to undergo a means test to determine where they should end up with.
The first is Chapter 7. This involves liquidating the assets of the consumer and using the profits to pay off their debts. Whatever is not paid will be discharged. The other is Chapter 13. This involves a repayment plan that the court will decide for the consumer. This usually covers only a portion of the debt and once completed, the rest of the debt will be discharged.
The article also provided a couple of reminders for consumers wishing to cure their debt problems with bankruptcy. One is to try and perform the means test on themselves before filing their petition. If they think that they will end up with Chapter 13, the article suggests that consumers go for debt settlement instead.
National Debt Relief also cautions consumers about the costs of bankruptcy. It can go up to $3,000 just to have everything processed.
Lastly, the debt relief company warns consumers of the effects of this debt solution on their credit score. It is known to pull down a score by up to 200 points. However, it can help the consumer start anew immediately and improve that score.
To read the whole article, visit the National Debt Relief website.
National Debt Relief is a BBB accredited debt relief company that employs IAPDA (International Association of Professional Debt Arbitrators) certified debt professionals. Consumers can find out their debt relief options by calling them at 888-703-4948.