Ways To Deal With Debt

Ways To Deal With Debt

 

by Mary Guimont

America, today

Today, Americans,  face debt more and more each year. The average American makes 51,000 k. The average debt for this American is 75,000. Credit is becoming the devil's advocate for liens, repossessions and seizures. Many are filing bankruptcy in court and are losing everything they have worked for while  others  seek another loan to cover their last loan. Debt is becoming a four letter word and growing  concern for

all Americans.

 

Ways to Deal with Debt

Credit Counselors

Credit Counselors are usually with a non-profit  agency that offers educational advice to consumers on how to avoid incurring debt. Credit Counselors set up a payment plan between the consumer and his creditors. After a plan is made and then agreed upon. It is then act out on by the consumer sending one payment to the credit counselor agency and the credit counselor then distributes the payment among the consumers creditors. 

What to know when choosing a credit counselor.

When choosing a credit counsel agency, the consumer should always make sure the the agency is a non - profit 

Choosing a credit counselor:

If your considering the services of a credit counselor, Here is what to expect

http://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor

Coping with debt

When you are dealing with debt. You have options to choose from. Learn these options.

http://www.consumer.ftc.gov/articles/0150-coping-debt

Filing bankruptcy

If you are considering filing bankruptcy. Here are some things you should know.

http://www.consumer.ftc.gov/articles/0224-filing-bankruptcy-what-kno

What is a bankruptcy?

By Mary Guimont                                                                                                                                                                   

Bankruptcy

 Bankruptcy is when a person or entity can no longer pay their creditors. They take a legal action in court to gain relief from their debt which is called bankruptcy.

A person in debt, may have liens on their property from creditors. Their wage garnished by a collection agency. When a debtor files bankrupt this immediately prevents the lein from taking place and stops the garnishment on their income.

Difference Between Chapter 7 and Chapter 13

When a person files bankrupt. They ether file Chapter 7 or Chapter 13.

Chapter 7

Chapter 7 is when all assets that are not considered exempt are to be liquidated of and the proceeds are to go towards the debtor's debt. All insecure debt is erased. Secure debt is ether seized or what is owed is negated by the debtor to the creditor and decided by the judge as to what is fair

Helpful website for information about Chapter 7

Chapter 13

Chapter 13 is when the debtor asks the court to give them more time to pay off their debt to the creditors This prevents seizure of property and garnishment of future income. In Bankruptcy Court, the judge usually gives the debtor, 3 to 5 years.

Free information and help with Chapter 13

Advantages of Chapter 13 over Chapter 7

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on "consumer debts." This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.



Other Websites We Have That Might be Helpful:

Can a Collection Agency garnish Federal Benefits

Statue of Limitations for Old Debt

Dispute a debt

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

Bankruptcy Terms and Defintions

By Mary Guimont


Who is the Debtor in a bankruptcy?

A debtor is a person or entity, who has borrowed money, property or services from another party.
If you are the one who owes money. You are the debtor.

Who is the Creditor?

A creditor is the person, entity, organization or other party that has loaned an individual or another party, money, property or services.

What is a Asset?

An Asset is any type of property that the debtor owns.

What is a Bankruptcy Administrator?

As the name implies, the bankruptcy administrator oversees the administration of bankruptcy cases and monitors both the conduct and transactions of the individuals or parties involved in bankruptcy cases.

What is a Bankruptcy Estate?

A bankruptcy estate includes all property that is owned by the debtor at the time that the bankruptcy case is filed. This includes anything that falls under the jurisdiction of the bankruptcy court.

What is a Adversary Proceedings?

An adversary proceeding is a lawsuit that may arise during a bankruptcy case. The adversary proceeding begins by filing what is known as a pleading document that is called a complaint.

What is a Automatic Stay?

An automatic stay is a restriction that stops certain actions by creditors to collect debts from an individual or entity who has filed for bankruptcy.


Who is the Trustee in a Bankruptcy?

A trustee in bankruptcy is an official that is appointed by the court to administer the debtor’s estate. The trustee is under the supervision of the bankruptcy administrator or U.S. trustee.


Websites that might be Helpful to you:

Can Federal Benefits be Garnished?