Tag Archives: Debt

Avoid These Mistakes When Negotiating with Creditors

When debts get out of control, negotiating with creditors to reduce them can be beneficial. Not knowing details of your specific situation will make it easier for a creditor to take advantage of you. In any negotiation, knowing what your rights are, as well as the other party’s, is valuable. Is My Debt Secured or Unsecured? If you are dealing with a secured debt, the creditor will be concerned with some piece of property that has not been paid for. This can include anything from a vehicle, boat, or home. If a secured debt is not paid, the creditor is permitted to take the property. With an unsecured debt, the merchandise that was purchased by the borrower cannot be taken. Find out what kind of debt you are dealing with. This way you will not be tricked into letting an unsecured creditor confiscate your property. What are the Creditor’s Strengths…
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What Can Declaring Bankruptcy Do for Me?

There are many common misconceptions about what bankruptcy can do for someone. When bankruptcy is declared, a person is given the opportunity to repay debts. During that time, they will be protected by the federal bankruptcy court. The two most common forms of bankruptcy are liquidation and reorganization. Chapter 7: Liquidation Bankruptcy Not everyone can file for Chapter 7 bankruptcy. To do so, your situation must pass what is known as the “means test”. This test is a formula used to determine if your income is low enough. It combines household incomes and then subtracts expenses while factoring in the number of people in that house. Once qualified, Chapter 7 bankruptcy can erase most of your unsecured debts. Some of your property may be sold if it isn’t exempt, which most things are. To pay back secured debts, you are given the option of having items repossessed. But if the…
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