Debt As Opposed To Bankruptcy
With consumer debt at an all time high, owing a debt can seem very overwhelming. A lot of people have looked into the internet and have seen advertisements claiming debt relief as a quick fix. Alluring as these ads may seem, it is important to be on the lookout for the validity of the claim.
While many of these promise a quick fix, that quick fix may be bankruptcy. And yes, bankruptcy is one way to address your financial issues, but in most cases it should be seen as a last resort. The fact that you claim bankruptcy remains on your credit report for ten years which means that your chances of getting credit, jobs, a place of residence, or insurance are significantly lowered.
It’s always a smart move to think about other options before deciding to file for bankruptcy. Speak with your creditors. Most of the time a re-payment plan can be etched out that is changed or can be paid in installments. Credit counseling services can work with you and your creditors to make debt repayment plans.
If you are considering a second mortgage, be careful. These loans require your house as collateral. Bankruptcy can stop foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep certain assets. However, personal bankruptcy does not usually eliminate child support, fines, taxes, alimony and in some cases student loans.
It will not usually permit you to keep your property if your creditor has a security lien or mortgage that has not been paid. A relatively recent tweek in bankruptcy laws makes certain hurdles that you have to overcome before you can even file for bankruptcy, it doesn’t what type of bankruptcy. First, you have to get credit counseling from an organization approved by the government within six months before filling.
Bear in mind that in certain cases you need to pass a test that requires you to confirm that your income level does not exceed a certain amount.
Mallory Megan works for a collections agency that works with a debt collection lawyer. Also, she does articles on business and finance, the credit industry and collections agencies. Get a totally unique version of this article from our article submission service
Spanish Debt Collection Agency Humiliates Debtors Into Paying Up
Would you be mortified if a man in a tuxedo and a top hat followed you into a restaurant and silently joined your lunch date? How about a trio of men with more to love dressed like superheroes asking your neighbors for donations to assist you in your financial situation?
In Madrid, be sure your bills are paid off or you may be visited by one of these interesting characters. The recession has slammed Spain hard. Official figures show that the unemployment rate has sky rocketed, reaching 19.3 percent. That is one of the highest rates in Europe. Around four million people are not working. That\’s the same number of jobless people as France and Italy put together. One business is flourishing however, that business is debt collection.
Spanish law is pretty relaxed when it comes to paying debts. They permit 95 days to settle bills unlike the 30 in other parts of Europe. This, coupled with the fact that Spanish courts give the matter low priority put collection companies in high demand.
One agency, El Cobrador del Frac – which translates as \”The Debt Collector in Top Hat and Tails\” – has more than 250 collectors, and an equal number of secretaries and investigators.Their goal is to work out some deal and retrieve money, not to go after people without the means to pay.
For them, the new business stems from constructive trade which is suffering badly from a huge slowdown. Homeowners owe money to contractors, contractors owe money to construction companies, construction companies owe equipment makers, and so on and so forth.
Last year, the company had a wedding company contact them about a couple who didn\’t pay the $83,000 bill for their huge over the top wedding. The company obtained a wedding guest list and began calling up guests one by one on the phone and asking them if they had the chicken or the lobster, and then asked them where to send the bill. Eventually the shamed couple paid up.
These ideas are interesting, (I guess that\’s one way to describe it) but they won\’t be this effective in due time. In this time of crisis, too many people have debts and they honestly can\’t pay. And to these people, it doesn\’t matter how much you humiliate them.
Mallory McGuinness works for a debt collection agency. She also does stories about business, finance, consumer spending and debt collection. Get a totally unique version of this article from our article submission service