Bankruptcy or Debt Negotiation ? What is Better ?

Outline: What Are You Looking For?
Bankruptcy Facts:
Avoid Foreclosure
Stop Wage Garnishing
Be Debt Free
Stop Creditors From Contacting You
Chapter 7 and 13 Optional
Alternative To Debt Relief
Helps To Stop Repossession
Interest-Free Debt Repayment Plan

Click here for Free Bankruptcy Evaluation

Debt Negotiation Facts:
Free No Hassle Quote
Reduce Credit Card Debt 40-60%
Debt Free in Less than 36 Months
One Easy Monthly Payment
Alternative To Bankruptcy
Save More Vs Credit Counseling
No Home Required
Credit Cards, Medical Bills, & Personal Loan Settlements

Click here for Free Debt Negotiation Evaluation

What is better, bankruptcy or debt negotiation?

Bankruptcy and debt negotiation are the two main ways that debtors use to get out of debt. If you file for bankruptcy, you will be fortified from your creditors, and might be healthy to get away from paying your debts. However, there are drawbacks. Firstly, if you have assets like real estate, these might be seized by creditors to pay off your debts. Next, you will receive a massive negative impact on your credit report in a bankruptcy. In a bankruptcy, the entire legal action will be recorded and consequently your credit report will be devastated. This means that you have no access to loans hereafter and it will take you many years before you can restore your credit ratings.

On the other hand, you discuss your dire financial circumstances to your creditors, in a  debt negotiation, convincing them than it is in their interest to accept a lesser amount as settlement since they will get nothing if you file for bankruptcy. Whether you succeed in negotiating your debt will depend very much on your negotiation capability or that of the professional counselor you hire. You could anticipate to eliminate 60% of your unsecured debt if the negotiation is executed well.

However, if you have a very massive debt, or a non dischargeable debt that causes so much stress that it interferes with your capability to work, parent, or sleep, then you should think about filing bankruptcy.

Bankruptcy or Debt Negotiation? Which is better?

Satisfaction Of Judgement on Credit card company that was included on my Bankruptcy Discharge But still on?

azbluesman1962 Asked:
Satisfaction Of Judgement on Credit card company that was included on my Bankruptcy Discharge But still on?

I have a sentence for a credit card. It is on my credit report bankruptcy, but also as a verdict. I visited the Better Court and was advised to contact credit card company so that they could solve them. We are now in the last couple of days a home and the lender no credit when we do not get this solved. Any tips? Thanks

Best answer:

Answer by Dixie Darlin’
If the judgment was won and was put on your credit report prior to the filing and discharge of your bankruptcy then it will remain on your credit report. It will be granted to be reported for 7 years.

The judgment will not be removed but they do have to mark it as Discharged as part of the bankruptcy. Your bankruptcy does not erase accurate reporting, they just have to update the position of the judgment.

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Q&A: What are the steps to debt collection up until judgement?

Question by *~Cam’s Mommy ~*:
What are the steps for collection to verdict?

Let’s state I miss a payment on a 26,000 dollar debt and continuously miss that payment. What steps will the lender take for action and how long does it take for apiece step?

Also, what if you can’t pay the minimum equilibrise on the debt. Do you contact the bank and inform them of that and offer them a smaller amount? What actions do you take before you get to the points listed in the first question.

Thanks!!

Best answer:

Answer by bdancer222
It really depends on who the lender is and what type of credit. If you miss a payment, it will show up on your credit report at the 30 day mark. Before that, you will probably begin getting collection calls and past due statements.

After 90 to 180 days past due, your statement will be sent to collections. Some lenders, including credit card companies, have their own collection departments. Some will assign the debt to a collection agency. And most will sell the debt to a collection agency. The collections will be reported to your credit file.

With a $ 26K debt, it is very likely that either the original creditor orthe collection bureau will sue, win a judgment, then attach your bank account, garnish your wages, and lien your property. All of which further restitution your credit.

If you are having financial problems, contacting the creditor is a good idea. Often they will try to work with you.

Give your answer to this question below!

Q&A: Can a foreclosure happen after bankruptcy discharged the debt?

Question by Sunny: Can a foreclosure happen after bankruptcy discharged the debt?
I filed Chapter 7 bankruptcy and included my mortgage in the bankruptcy. The bankruptcy was discharged and I moved out of my property. Then I find out that the mortgage company has put “Foreclosure Proceedings Started” on my credit report. These proceedings started after the debt had been discharged and I had moved out. Is this correct or is there a way to force the mortgage company to remove this from my credit report? Lenders are treating this like a foreclosure now instead of a bankruptcy.

Best answer:

Answer by SPIFIMAN1
If you mortgage was included in your bankruptcy and the debt was discharged your credit report should read “Included in bankruptcy” and show a $ 0 balance.

You can either dispute this statement with the credit bureaus or have your lawyer fire off a strongly worded letter to your ex mortgage company.

Know better? Leave your own answer in the comments!

Getting A Credit Card : Do You Check Out?

When people apply for credit cards, lenders check them out thoroughly, so it’s not surprising that many people get turned down. Here’s a guide to what lenders look at when deciding whether you remember for their latest credit card deal.

What’s In A Name?

First of all, credit card companies will search to see if your study is linked to any outstanding fraud cases. This could be bad news if you share a study with a known fraudster. Next, they’ll look at your address. If that has been linked to any fraud or bad debt, it could count against you. That’s why some people publicly disassociate themselves from others in their households who might not be good money managers.

Lenders also check to see of your address is on the electoral roll and whether there are any County Court Judgements (CCJs) against you. If you’re clear so far, then you’ve passed the first hurdle.

Delving Into Your Credit Report

Next, lenders will look at the information held by the credit reference agencies. These agencies (of which Equifax and Experian are the ideal known) hold records on all credit transactions made from the day people first open a bank account. Credit card agencies share the information given on applications. What’s even more important is that they share information about how people have paid their debts. The credit report will show whether people have paid promptly, paid late or defaulted on payments. This is a key bourgeois for lenders in deciding whether people should be allowed additional credit.

Can You Pay?

This payment information will help lenders decide whether people are likely to be healthy to pay them back if they extend credit. They will look at how much people have already borrowed, whether they have paid it back on time and whether they have missed payments. They will also look at the number of credit applications made and assess whether people can afford to take out more credit. All of this information will contribute to the overall credit score. Lenders will use this to decide whether to approve a credit card application, and what interest rate and credit limit to set. After a certain period, provided the payments have been made properly, this credit limit will be increased.

How To Get A Superior Credit Score

Apart from managing credit card and debt repayments properly, there are other factors that affect people’s credit score. These include:
– Their age,older people score more highly – Their marital status, married people are seen as superior risks than single ones – Whether they own or rent their homes. Owning a home is good for the credit score, while living with parents will not help much. – Being on the electoral roll – Avoiding CCJs, bankruptcies and voluntary arrangements. All of these signal that people are unable to mange their debt – Making sure they have no financial links with someone who is a bad money manager.

Getting A Credit Card : Do You Check Out?

Related Credit Card Judgement Articles

what are the chances or applying for a credit card with a judgement on credit?

Question by mrs lopez: what are the chances or applying for a credit card with a judgement on credit?
Last year a judgement was place on my credit report but Im paying it off monthly and for tax season, its garnish but now I want to apply for credit card what are the chances for me to get approved? any advised?

Best answer:

Answer by living dead girl
i think most people regardless of position have a pretty good chance of getting a low limit credit card – you might be started at 0 – 0 and healthy to increase after making timely payments. I would recommend chase.com,they seem to be pretty fair. or go to the bank and apply where you have your checking statement – because they know you and your history with them.

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Are Homebuyers Being Frozen Out of the Mortgage Market?

Are Homebuyers Being Frozen Out of the Mortgage Market?

The number of homes changing hands fell to a record low in December despite an increase in the number of buyer enquiries having risen for the second month in a row according to the Royal Institution of Chartered Surveyors (RICS). They also stated that income are at their lowest levels since records began in 1978. The only people who are buying properties at present are people with existing cash, equity in their properties and young people who have been helped with a deposit by their families. Mortgage approvals are so low at present and estate agents are believed to have sold on average 10 homes in the last three months. How can estate agents survive!

The problem as we know it!

Banks are still unwilling to lend money to homebuyers and homemovers who need a 90% to 95% loan–to-value mortgage and this does not look likely to change soon. At present Banks are getting two different messages from the government. The first is that they should lend to the housing market and small businesses and the second message is that they should increase their capital base. This is impossible for the banks as they can't really do both.

The Royal Institution of Chartered Surveyors concurs with the current report that Sir Crosby produced and they believe that we need some government backed mortgages to be provided through the existing banking system. The banks would then be more willing to lend money as the government would end up being a lender of last resort. This approach would certainly free up the first time buyers market and make an enormous difference to the number of mortgage transaction.

More buyers are interested but mortgages are not available

Without immediate help there is a real danger of homebuyers being frozen out of the mortgage market, home prices will start to new lows, repossessions will increase and negative equity will become common place. This is a bleak assessment and Ian Perry from the Royal Institution of Chartered Surveyors stated it can only get worse, mortgage transactions are at a 30 year low at present and he believes that there is interest at present and people would like to purchase now.

A small ray of sunshine for homebuyers and homemovers has appeared finally!

Finally there are some interesting mortgage rates for first time buyers and homeowners looking to remortgage that are well under 5% barrier. These new interest rates are for people who have clean credit reports with the credit reference agencies like CreditExpert also known as Experian . In other words they are only for people who have no arrears, have not defaulted on any payments and have no county court judgements. Alliance & Leicester have just released a two year fixed rate at 3.49%, a 2% arrangement fee, plus a valuation fee depending on the property valuation and income required for lending is based on affordability, roughly 4.75 times a single income or 4.5 times a joint income.

Other new interest rates are 5 year fixed rates at 4.79%, 10 year fixed rates at 4.99% and a lender who is willing to lend 15 / 20 /25/ 30 year fixed rate at 5.89%%, a £895 arrangement fee, plus a valuation fee depending on the property valuation, income required for lending is based on 5 times a single income or 3.75 times a joint income and there is a 10 year penalty should you wish to leave. The ideal 2 year tracker rate is currently 2.99% or 1.49% above the Bank of England’s base rate and the ideal 5 year Tracker is currently 3.85% or 3.35% above the Bank of England’s base rate.

To answer my original question, “Are homebuyers being frozen out of the mortgage market?” my reply has to be yes in agreement with the Royal Institution of Chartered Surveyors findings. There are millions of homeowners and first time buyers who have arrears, defaults and county court judgements that are unable to move to another mortgage lender for a superior interest rate due to their credit report. There are first time buyers who are penalised for not having a huge enough deposit to purchase their first home and there are homeowners who desperately need 90% to 100% mortgage products. You should always use a reputable Mortgage advisor to help you find the ideal mortgage acquirable for your individualized circumstances.

Related Default Judgement Articles

Q&A: Can 6 years old credit card judgement be collected by lawyers and how?

Question by NICK: Can 6 years old credit card judgement be collected by lawyers and how?
I have a credit card default judgment of 00 from another county in California that I used to live in. I was not serve and did not know about it until now, since I moved away 6 years ago. Now they must have sold the judgement to a law firm or collection law firm. The law firm sent collection letter and notice plus interest into ,000 they trying to collect. They also changing the study of creditor of the original judgement into their name. It was not on credit report for the past years because the debt is 8 years ago. Should I ignore them or negotiate? What are my option? Please Help and no short answer…

Best answer:

Answer by Mustanger
Answers here are not what you need. What you need is to consult a lawyer versed in this type of action in California. What you get here are mostly views and views are like rear ends. Everyone has one and they all stink. Find a knowledgeable lawyer. It’s the only way to find out what you rights under California law are.

What do you think? Answer below!

Q&A: How do I report a debt (monetary court judgement) to one of the credit reporting agencies.?

Question by tlcaptain: How do I report a debt (monetary court judgement) to one of the credit reporting agencies.?
I have a monetary court judgement in the amount of ,000 for restitution caused by a tenant. I want to record this legal debt with the credit reporting agencies. How do I do it? What is the cost? Must I report it to apiece agency…or can I just report to one and the others automatically “pick it up”?

Best answer:

Answer by 123Catarina
There are individuals and companies that collect public information from the Courts and report it to the credit bureaus. You might check with the Court Clerk to see who does it in your jurisdiction.

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Is there a legal document that can discharge a primary cardholders responsibility from authorize user’s debt?

Question by jingz: Is there a legal document that can discharge a primary cardholders responsibility from authorize user’s debt?
Our relative who bankrupted before uses my refer to apply for credit cards, but recently defaulted on couple of them. My relative is going to pay for the debt, but is there anyway for me to be release of this obligation? Is there any document that my relative to sign and free me from the responsibility?

Best answer:

Answer by Jeanne R
Unfortunately the only way for you to be released is to file a Police report for the Identity Theft and the fraud. Your relative might state that he/she is going to pay the debt but can you really trust someone who has perpetrated a criminal fraud? Basically unless the mortal in question pays the debts in full NOW, you really have no other option.

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