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Debt Settlement Programs and Chapter 7 – Part 1 (Page 1 of 2)
When debtors find it difficult to redeem their outstanding dues, they generally try to find various ways and means to repay their debt. However, in many cases, this does not work out properly owing to various reasons, and debtors start thinking in terms of Chapter 7 and filing for bankruptcy. Availing the facilities offered by the statute can solve some of your immediate debt problems, but a certain amount of debt will remain even after discharging Chapter 7, and your credit ratings will carry a “flag” for at least seven years. Needless to say, it becomes almost impossible to avail large credit facilities in the future. Many companies offer debt settlement facilities in the form of debt settlement programs. One of the most common type of debt is credit card debt, in which cases the companies offer credit card debt settlement programs so the debtors can redeem their dues.
Generally, credit debt settlement companies work to provide customized solutions for individuals who have low monthly incomes and delinquency problems. The extent of debt settlement services vary from company to company. However, all companies provide certain features which remain common, and facilitate credit card settlement. A debt settlement company can provide options to redeem, and it is advisable to avail the facilities rather than file for Chapter 7 and bankruptcy. It is important to know exactly what Chapter 7 is, and what issues are associated with engaging in bankruptcy. The knowledge can be useful in deciding whether to file for Chapter 7, or avail debt settlement program to repay.
What does Chapter 7 signify? Chapter 7 of the Title 11 of the United States Code, dealing primarily with the bankruptcy code, fundamentally governs the process of liquidation under the bankruptcy laws of the United States government. Chapter 7 is associated with liquidation and bankruptcy issues. It offers the simplest and quickest way to file for bankruptcy – and the statute is available to all U.S. individuals, corporations, and partnerships. As per the statute, a trustee is appointed by the court to gather and sell all non-exempt property, and use the proceeds availed from the sale to pay off the outstanding dues to the creditors.
According to the law “Exempt property” is the property that the debtor is allowed to keep or retain on his or her own name. The facility is given to the debtors, so it becomes possible to “save” something for the sustenance and livelihood of the debtor’s family, as well as the debtor. The nature and kind of property exempted depends upon the state jurisdiction and its bankruptcy laws. It is advisable to consult a good attorney to have a clear understanding regarding exempted properties. According to the new law, it is mandatory to keep residence in a particular state for certain duration before availing the statute benefits and facilities. The new updation was enforced to prevent a debtor from “moving” to another state offering more generous exemptions, just prior to filing for bankruptcy.
Some Lifelines that Offer Low Interest Bad Credit Loans
If you believe that the large debt you owe is somehow overwhelming you, then it is about time for you to search for your next lifeline agencies that provide low interest bad credit loans. What are some of these agencies? What assistance do they provide? And how could I benefit from these so-called lifelines? Read on the remainder of this article to find out the actual responses to these queries.
What are Non-profit Organizations?
There are a lot of non-profit organizations nowadays that offer low interest loans for bad credit. These are loans extended to people with low credit scores and poor credit histories.
These bad credit loans charge rates of interest that are slightly lower than the prevalent rates in credit companies and banks. The main intent behind offering low interest rates is to gradually help individuals properly manage their finances until such time that they are able to pay off all their debts. Soon, these individuals will be totally free from the overwhelming debt they owe.
Most of these organizations are non-profit. This means that the interest rates they impose on the loans they provide are used for paying their organizational expenses. The amount gathered from interest allows these organizations to continue helping people repair their bad credit history.
Another good thing about non-profit organizations is that they provide versatile and low interest loans for bad credit. What exactly does this mean? Well, some of these organizations actually monitor the repayment of loans and the income sources of their debtors. Once a debtor informs the organization of a sudden reduction in his or her income, the managers of the non-profit organization could provide an extension on the repayment period as well as slash out a certain value from the debtors total credit. This way, the individual needs not to worry about his monthly installments, while he seeks for additional sources of income.
How Credit Unions Help Debtors
People who possess poor credit ratings could also seek help from credit unions. What are credit unions? These unions are established on the basis of a common interest of a locality mostly in relation to labor and other civic activities.
By applying for low interest bad credit loans from credit unions, people will have access to ample sums of money to finance medical emergencies and other immediate needs. These loans also charge low rates of interest which removes the need to worry about large repayment installments and lengthy terms of the loan. Another good thing about credit unions is that they allow more flexible repayment terms of, without imposing any charges or penalties.
Yes, you have several lifelines you could call or visit to solve your financial problems. What you just need to do is to open your mind to the possibility of resolving all your credit problems and to be zealous enough in locating organizations that offer low interest bad credit loans.
Once you have found one, be sure to make on-time repayment of your loans and soon, you will be relieved of all your credit!