Consumer Debt Bailouts - How to Legally Eliminate Unsecured Debt in This Recession The best way to get rid of excessive unsecured debt is to declare Chapter 7 bankruptcy. All your assets shall be taken over and shall be liquidated to repay your debts to the maximum extent possible.
BigNews.Biz - Feb 26,2010 - The best way to get rid of excessive unsecured debt is to declare Chapter 7 bankruptcy. All your assets shall be taken over and shall be liquidated to repay your debts to the maximum extent possible. The remaining debts shall be waived and you will be free from your obligation to settle all your debts. However, there are few problems in this approach.
The first is that declaration of Chapter 7 bankruptcy is not as easy as it is often made out to be. You will have to opt for credit counseling for six months from a government authorized expert before you can file for bankruptcy. This means that relief from your excessive unsecured debts in the short term will become next to impossible. Chapter 13 bankruptcy is another option but it does not offer comprehensive relief as offered by Chapter 7 bankruptcy.
Considering all this, it makes sense to opt for debt settlement. What are the advantages of seeking debt settlement to get rid of excessive debts?
The first and the most obvious advantage is that it is completely legal. You may have heard a lot about the illegality of tactics used by various debt settlement companies. However, it is beyond doubt that debt settlement is a completely legal transaction. Big nations have resorted to settlement of debt when they faced economic crisis. Hence, do not let anybody con you into thinking that settlement is illegal.
Settlement leads to reduction of debt by fifty to seventy percent. Even if you owe $7500, you will definitely qualify for a 50% waiver. This means that you will have to repay the remaining amount and your entire debt will be cleared.
Thirdly, settlement is just a new contract between you and your lender where the latter agrees to waive a significant portion of the debt without any repayment in exchange. As compared to bankruptcy, they are very few formalities involved and very little procedural expenses involved. You can walk into your lender's office or appoint a debt settlement company to act on your behalf. In any case, you can get the entire work done in a span of few days.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
.gif)
