Everything You Need To Know About Bankruptcy
Bankruptcy is generally seen as a quick fix solution to financial problems. Yet the effects of bankruptcy are long term and can hinder your ability to get employment, house, and any type of credit. It is important to weigh the pros and the cons of bankruptcy before making a major choice.
It is a fact that bankruptcy comes with a number of benefits. First and foremost it annihilates most of your debt. It can aid you with repossessions, missed debt payments, defaults and lawsuits. It can get you started on rehabiliation if you have poor credit.
Bankruptcy will hinder the phone calls from creditors, collections letters, repossessions, declined charge authorizations, cancelled credit cards, and lawsuits. You can also keep your car if you keep up on the payment; bankruptcy will also allow you to keep your home if you remain current on the payments.
Bankruptcy allows you to stop foreclosure and permits you to make monthly payments on amounts you have owed in the past. Finally, it stops creditors from making a claim after it is filed, even if your financial situation changes.
Conversely, bankruptcy law can offer a “fresh start” but only every six years in most cases. Bankruptcy will stay on your credit report for ten years and hurts your credit rating severly. Additionally, filing bankruptcy may require a wait of two years before it is possible to buy a home. Some lenders allow for home loans after one year however.
Bankruptcy does not wipe out most tax debt. It does not clear away student loan debt. It requires that you give up your credit cards. It might cause you to lose some of your things, and unfortunately bankruptcy carries a stigma that can be embarrassing.
If you are not positive whether you should file for bankruptcy or not, get in touch with your creditors to see what type of repayment plan they can come up for you. While bankruptcy is an option, in most cases it should be seen as a last resort.
Rapid Recovery Solution is a commercial debt collection company. Get a totally unique version of this article from our article submission service
Bill Collectors On The Phone
If you owe money to a creditor debt collection agencies can report your debt to credit bureaus, file suits against you, and should be taken very seriously. The best way to protect yourself and your finances is a methodical approach. First, know why you are being contacted. Know what the debt is from and exactly how much it costs.
Ask for the name of the person calling, the agency, the creditor, and the agency’s address and fax number. You have the right to tell a collector over the phone that you want all future contact to be in writing. Follow up all requests with a written request.
Keep in mind if you tell the collector not to contact you at all it is entitled to call you once more to let you know how it plans to proceed. Another request that can be made is that you are the only person that should be contacted. It is a good idea to keep a file including details and dates of phone conversations and when you send or receive letters.
If you do send any written correspondence to the collections company do this by Certified Mail, Return Receipt Requested. This guarantees that the letter reached the collector, giving you a signed receipt as proof. If you work out a re-payment plan over the phone, ask for the terms of the plan in writing. Any promise to remove or adjust credit history should also definitely be documented.
Make sure that you pay the right party; payments should be made out to the collections agency, not the creditor, unless you have been otherwise instructed to do so. Carefully look over the amount you are being asked to pay. Get to know how much interest, fees or charges that have been added.
If you feel as though your collection agent is acting abusive or hostile, be sure to mention it to the agency and keep this complaint on file. The last thing to keep in mind is don’t ignore a collector. Even if you feel that the debt is not yours; they will continue to call and it may mean more trouble and time in the long run.
Mallory Megan is employed by a debt collection agency. She also composes stories on business, finance, consumer spending and collection agencies. Visit the Uber Article Directory to get a totally unique version of this article for reprint.