Table of Contents :
1. Introduction to Debt Management
2. Why Choose A Debt Management Program Over Bankruptcy?
3. Choosing the Right Debt Management Program
4. Debt Management Glossary of Terms
5. Debt Management Frequently Asked Questions
2. Why Choose A Debt Management Program Over Bankruptcy?
Recent changes in bankruptcy laws have made bankruptcy a less preferable option when seeking a resolution to insurmountable debt. Under the old rules, people filing for Chapter 13 protection had to devote all of their disposable income (income after paying standard living expenses) to their repayment plan.
While persons filing under Chapter 13 protection still have to hand over all of their disposable income, they have to calculate their disposable income using allowed expense amounts dictated by the Bankruptcy Courts. These allowed expenses must be subtracted from the filer's average income during the six months prior filing. This often results in debtors being required to pay a much larger amount of "disposable income" into their plan than actual available income on a monthly basis.
Under old laws, most filers could choose the type of bankruptcy that seemed best for them -- and most chose Chapter 7 over Chapter 13. New laws prohibit some filers with higher incomes from using Chapter 7.
The first step in determining if you qualify for filing under Chapter 7 is to measure your "current monthly income" against the median income for a family of your size in your state. Unfortunately "current monthly income" is not stated income at the time you file: It is based on average income over the last six months prior to filing. For many, particularly those who are filing for bankruptcy due to recent unemployment status, their "current monthly income" according to 6 month rules, would be far more than their actual take home income at the time they file for bankruptcy.
After discussing bankruptcy requirements with an attorney, you may determine a form of Debt Relief Serve to be the preferable option. Debt counseling, Debt Management, and Debt Consolidation are basic forms of debt relief that should be considered before making final decision.
Are you having these problems with Credit Card Debt?
Do you get collection calls from creditors?
Do you pay only minimum payments on your credit cards?
Have you been declined credit?
Do you float checks or bounce checks?
Have you ever had your credit card declined?
Are your credit cards near or over your limit?
Are you seeking assistance in:
Debt Relief services may be able to assist you getting the relief you need from huge credit card debt! Debt Relief has many options available to the individual or business with insurmountable debt. A qualified Debt Relief Agency will offer Debt Consolidation,Debt Management and Debt Counseling; with some companies specializing in working with credit card companies.
Debt Relief Service companies working directly with the major credit card companies provide professionally trained counselors to review your accounts. In most cases, they are able to work with the credit card companies they have established relationships with, and can arrange a reduction or elimination of currint high interest rates. This allows for more of your monthly paymet to go towards paying off your outstanding balance, not just interest! Many are often able to negotiate a lower monthly payment - one that fits your budget. Most important, once negotiations have been reached with creditors,those annoying collection calls will cease.
Contact a Debt Relief Service Company today for credit card debt repair and payoff your account.
Credit Counseling assists you re-aligning your budget; and establishing a plan you can work with, while getting your credit back on track.