Bankruptcy is a legal process involving a person or business that is unable to repay incurred debt. Usually, a debtor files a petition with the local court seeking a court order. A court appointed administrator gathers all financial information, assets, and outstanding debt details to obtain a debt repayment schedule. It is a common misconception that bankruptcy offers a chance to start fresh by forgiving all unpaid debts for debt relief. What many attorneys do not tell their consumers is the new law (BAPCPA) which was designed by Congress to make the bankruptcy process more expensive and very ineffective to forgive debts. Another omitted fact about the bankruptcy is it will remain on personal record for several years causing problems such as landing a new job, applying for credit cards, and even opening a bank account. Given the current dreadful economic conditions in the nation, this will probably come as no surprise to many American consumers today. But emerging national economic statistics state that more and more Americans are getting into serious financial trouble. Recent data indicates consumer debt is at all time high, close to $13 trillion as a nation, and $135,000 per household (student loans, auto loans, credit cards, and mortgages). The most common events which paralyze borrowers are: loss of job, divorce, debt over-leverage, medical illness, or disability.
Consumers all across the country are voluntarily filing for bankruptcy, not knowing the damaging credit consequences or awaiting high costs. At Strategic Debt Relief, we believe that bankruptcy is not the answer. It’s very unfortunate that most people are not educated enough to know what options they have at their exposal. The US education system does not teach students about personal finance and money management. This is why most Americans fall short of accumulating funds for retirement and end up knees in debt. We take pride in analyzing every situation and formulating the best debt relief plan for our consumers. We believe knowledge is power.
Many of our consumers who have contemplated to file bankruptcy resulted enrolling into our debt relief settlement program. Companies such as Strategic Debt Relief work directly with consumers, where a designated debt relief counselor will compile all unsecured debts and negotiate it with the lenders directly to offer a reduced lump sum payment as a paid in full settlement. There may be an impact on the credit score but the long term impact is much healthier than defaulting on loans or filing for a bankruptcy.
Do not wait until your debt situation gets out of control, let professionals guide you and help you to achieve proper debt relief. Get started today on the road to being debt-free. Call us for a free debt advice 877-297-4477.