Can you answer ruby’s question about Bankruptcy?:

I did not understand what a debt settlement company was all about. I thought I did but I soon found out it was not what I thought. I have made a mistake! They have a lot of my money and I thought I was doing the right thing. I just want to get my bill paid. Thank you.

Bankruptcy Tips

If you find yourself in debt that you can’t afford to pay there is a way to help take away some of that pressure without bankruptcy. You can use debt settlement to get you out of debt quicker. The main idea behind debt settlement is to get your creditors to settle for less money than what you really owe.

Lots of people use debt settlement companies to get out of debt for many different reasons.Lots of people get themselves so far into debt that they can’t dig themselves out on their own. Others want to avoid bankruptcy. Perhaps the number one reason people use debt settlement companies is simply to be out of debt.

In order to get a better credit rating, getting rid of your debt is the number one step. While debt settlement won’t necessarily fix your credit score, after your debts are taken care of you can begin to build your score again.

There are two distinct types of debt settlement companies. The vast majority,around 95%, of these companies are the kind that work without an attorney to settle your debt. These are the companies that you always see advertisements for on TV There is also a certain percentage that consists of law firms offering debt settlement as part of their legal services.

When you are thinking about what debt settlement company to use you need t o study your options. Most companies are going to vary to some degree. There are a few major items for consideration before hiring a company.

Any debt setlement company worth its salt {should|must} be able to cut off at least forty percent off your debts. If they can’t do this there is no reason to hire them. With some effort on your own you could save yourself around twenty percent. Why then would you pay a company to do something you could do on your own? Remember you should always get at the minimum a 40% savings.

You should always take care that your payment plan is something you can truly afford. {When using a debt settlement company to handle your debt they should work to get you debt free in about two years|Any time you use a debt settlement company the minimum time frame for you to be out of your debts is around 2 years}. In some cases it may take three. However if the company says that it will take longer than this you should find someone else to assist you.

If it is important for you to stop collection agencies from calling endlessly, it is a good idea to use a law firm to guide you through your debt settlement. The law states that when you have a law firm to help with your debt, any collections must go through the lawyer. If the calls keep coming you will have reason to sue.

Finally you should always make sure that you are dealing with a company that has a good reputation. There are a few companies that are only out to make money. In order to safeguard yourself from these businesses check the Better Business Bureau.

Debt settlement can be a great way to free yourself from drowning debt. When signing on with a debt settlement company make sure that they are able to help you and that they are reputable.



Thanks to Frank Froggatt for contributing this article to our Bankruptcy blog:

Bankruptcy Tips

Debt settlement is increasingly being adopted as a popular means to get out of credit card debt. Essential to successful debt settlement is having the right debt settlement company work for you. But how do you find the right debt settlement company? Here are 5 tips that could help you find the right debt settlement company.

1. Don’t get driven by high pressure sales

Internet today is swamped with lucrative debt settlement offers that are quite confusing, and hard to believe. The idea is to stay clear from debt settlement offers that seem too good to be true. Researching for the right offer and comparing various services offered by debt settlement companies, will help you reach the right debt settlement company.

2. No upfront fees

Stay clear of companies, ask for complete fees up-front. Look for a debt settlement company that takes fees on monthly to monthly basis. Also, there should be no maintenance fees associated with accounts. Although, it might seem difficult at first, in finding such agency but the effort will be worthwhile as the debt settlement company will indeed be reliable because it follows good business practices.

3. No, high percentage fees

The industry norm for debt settlement companies is somewhere between 10%-20% of your debt. The debt settlement company will charge this to negotiate a debt burden reduction of somewhere up to 50% or more. If a debt consolidation company demands more than this, stay clear of them. It will be good if you shop around for the best debt settlement rates by comparing various offers.

4. The debt settlement company should be listed with BBB

BBB stands for better business bureau. It constantly scans various companies for business practices they follow and adopts only those who is ethically professional. By checking the BBB record of a debt settlement company you can guess how reliable it is. It will ensure that you are dealing with right, honest and professional people.

5. Get feedback

Ask for previous clients of a debt settlement company, and contact him if possible. Lookout for friends, colleagues and associates who have undergone debt settlement in recent past, know their experiences, this would help you gain a better insight into debt settlement process and might provide you something which could save a lot for you.



Thanks to muellerduran for contributing this article to our Bankruptcy blog:

Making Money Online

Can you answer Airic C’s question about Bankruptcy?:

I have some credit card debt and I don’t know what credit card company to consider, either a “CCCS” or Debt Settlement company. Is there a better alternitive to either?

Chapter 11 Reorganization Plan

The landscape of the debt settlement (debt negotiation) industry has changed a great deal over the past few years, and as a result there is a significant amount of information circulating related to debt settlement that simply couldn’t be further from the truth.

For instance, I recently read an article whose author claims that all debt settlement companies charge hundreds of dollars for an initial “admin fee,” as well as a monthly service fee. True? Not necessarily. You see, there are indeed many debt settlement companies that model their fee structure this way, but to say that “all” debt settlement firms are the same is extremely irresponsible. Fortunately, there are several firms that do not charge an administration fee, nor do they charge a monthly service fee. Believe it or not, there are legitimate firms who do take pride in customer service and providing what’s best for their clients, as opposed to running a scam to rip people off.

Also, there seems to be a misconception that all debt settlement firms set up trust accounts, into which their clients are required to deposit funds each month so that the debt settlement company may withdraw their fees prior to the funds being made available to the client’s creditors for the purpose of debt settlement. Again, while some debt settlement firms operate this way, many do not. As a matter of fact, there are several debt settlement firms who work on a contingency basis and don’t require their fees until after settlements have been reached with their clients’ creditors. These same companies very rarely require that you set up a trust account, but rather prefer that you set funds aside each month so that settlement offers may be extended to your creditors at a later date. Many consumers considering debt settlement don’t have the necessary income to set funds aside each month, and must instead resort to a 401K loan, home equity loan or a personal loan from a family member.

As you can see, critics of debt settlement are often misinformed and should probably stick to a totally different topic, or perhaps conduct sufficient research prior to reporting on the subject of debt negotiation firms.

Admittedly, debt settlement is not a pain-free process, and it’s certainly not for everyone, but it has certainly saved thousands of dollars for individuals and businesses that otherwise would have been forced into bankruptcy. If you’d like to learn more about debt settlement - the good, the bad and the facts - visit http://donaldsonwilliams.com/Debt_Settlement.html



Thanks to Marie Megge for contributing this article to our Bankruptcy blog:

Have you claimed your Genesis site?