Debt Negotiation or Bankruptcy - Which is Right for You?

By: Tim Grimsley
Submitted: 2007-01-17 16:15:20
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

If you some you know is considering bankruptcy, remind them that there is another option called debt negotiation. If at all possible debt negotiation would be the better choice.

The large majority of bankruptcies for consumers are chapter 7 and chapter 13. Chapter 7 gives almost total relief of balances owed to creditors. With chapter 7 you will lose any property that stands as collateral for a loan. With chapter 13, you are allowed to keep your belongings, but the court system will set up a payment plan. This payment will arrange for the repayment of debts. The lenders will not charge interest to the accounts any longer. Chapter 13 is by far the most used of the two.

For those who are considering filing for chapter 13 bankruptcy protection there may be another option. Debt negotiation can often be the best solution in this situation. With debt negotiation you hire a company to negotiate with creditors on your behalf. They negotiate a deal very similar to what chapter 13 filing would do. The main advantage with debt negotiation is most creditors will notify the credit bureaus of your earnest attempt to avoid bankruptcy and satisfy your debt. This will help save your credit rating and in the long you will be much better off.

When searching for a debt negotiation company one of the best places to start is with debt consolidation lenders. Almost all consolidation lenders have a department for debt negotiation Continue

Article source: Expert Articles

Most Recent Articles in Debt Relief category

  • Debt Relief Program - By: Shane Peeler
    Debt relief can be any consolidation program that provides freedom from debt or help in the process of elimination. There are many alternative solutions to debt problems that are more or less efficient according to an individual's situation and debts involved.
  • Debt Elimination May Be Your Best Debt Cure - By: Jim Vrana
    Too much credit card debt is a financial disease that needs to be cured. Selecting the best debt cure can be a confusing and stressful experience. It is a personal decision on how a person can relieve their debt burden.
  • What should you do if you have credit card debt? - By: Simon Duffy
    Yesterday I read some worrying news that credit card spending is still increasing dispite the past 12 months warning we've had in the form of the credit crunch...
  • Debt Management Services Uk: A Sensible Step Towards Financially Free Life - By: Ashton Gabriel
    Taking up debt management services in UK is an effective way to settle all due debts.
  • How To Get Rid Of Credit Card Debt - By: Michiel Van Kets
    Who doesn't have a credit card these days? Or perhaps a more appropriate question is 'Who doesn't have credit card debt these days'? Think back to when you filled out the first application for a credit card.
  • Debt Settlement - Avoiding financial fiasco - By: Jason Holmes
    Debt settlement allows a debtor to pay much less than he actually owes to a creditor. The process is sometimes referred to as debt forgiveness. A good debt settlement firm can reduce 40% to 60% of the total unpaid amount.
  • How to Choose Between Debt Management and Debt Elimination - By: Jim Vrana
    For people carrying too much credit card debt, choosing the correct debt relief program can be a confusing and stressful experience. There are many factors which are involved in this personal decision.
  • Can IVA Debt Help Clear All Your Debts Forever? - By: Paul Hockney
    An IVA is a debt help solution which can help reduce your debts by up to 75%. So waht is an IVA and can it really help clear all your debts forever. Here we explain an IVA and how it really works.
  • Debt Management Plan: Dream To Be Debt Free - By: Ashton Gabriel
    Now clear all your debts with utmost ease and comfort through a good debt management plan.
  • Government Debt Help - One Way to Solve Your Debt Problems - By: Paul Hockney
    If you find yourself deep in debt then there may be a way out with a little help from the Government. Here we explore the Govermnet debt help options available.