|
|
(HealthNewsDigest.com) – It’s a well-known fact that stress can cause serious health troubles, and one of the most difficult stresses people face today is that of excessive debt. In these circumstances, on top of worrying about collectors, whether your home might go into foreclosure, and how to pay everyday bills, most people find it frustrating and confusing to even consider whether they should consider filing for bankruptcy protection.
Those in serious debt do have options. Bankruptcy is one of those options, but not the only one. In many cases, you may be able to handle debt yourself, which can help protect your credit rating. In other cases, other debt relief options may provide the best decision. However you proceed, it is important to remember that anyone considering bankruptcy should consult with an attorney who specializes in bankruptcy before making any decisions.
Below are some examples of serious debt trouble and options – bankruptcy and other – to bring you back to financial health:
Large unpaid medical bills: Consider direct negotiation first. Sometimes, medical providers will negotiate payment terms. Depending on what you owe, debt settlement also might resolve bills. A debt settlement company can negotiate a lower principal amount, but you will have monthly obligations to pay the settlements. However, debt settlement typically does less harm to credit than bankruptcy, and most debt settlement companies help you to learn how to adopt a new financial lifestyle. Clients who stick with the programs usually resolve debts in two to four years. Bankruptcy may be a last resort when medical problems have resulted in lost work or other issues that have created far too much debt to repay – even with negotiation or settlement
Divorcing with unmanageable debt: Consult an attorney to help you understand your debt obligations. Expenses such as child support payments cannot be discharged by bankruptcy. If you and your spouse both have large debts you cannot pay, bankruptcy might make sense before the divorce is finalized. If you suspect your spouse might file bankruptcy after the divorce, work closely with your attorney to protect your interest in property, payments or other obligations post-divorce.
Student loans: Most student loans do not qualify for bankruptcy discharge. Instead, if you cannot make payments, contact the lender to discuss repayment options. Most lenders will allow income-based payments or let you delay repayment until you are employed.
Debt resulting from temporary unemployment or other hardship: If you built up unmanageable debt due to a temporary hardship – such as loss of a job – but are currently earning an income, debt settlement might be a better option than bankruptcy to lower your overall debt burden. Since Chapter 7 bankruptcy requires filers to pass a “means test” to prove they cannot pay debts, this type of bankruptcy protection can be difficult to obtain. Filers with higher incomes more often qualify for Chapter 13 bankruptcy, which requires a repayment plan – but debt settlement plans can be more favorable. In addition, bankruptcy can in some cases endanger your ability to keep your home, while a debt settlement company may be able to negotiate with credit card lenders to lower your unsecured debts, allowing you to continue making mortgage payments and stay in your home.
No disposable income, high debt: If you truly have no income with which to pay debt, bankruptcy might be the only choice. This is especially true if you also have limited or no assets. In that case, you might qualify for a Chapter 7 bankruptcy filing that eliminates your unsecured debts. But in exchange, you will sacrifice your good credit for seven to 10 years.
Bankruptcy might be the best-known way to handle debt when you cannot make minimum payments, but it is not the only option. It also involves some serious considerations. Do know that other options exist, and regardless of what option you choose, with a good advisor by your side, you can resolve your debts and return to financial health.
Subscribe to our FREE Ezine and receive current Health News, be eligible for discounted products/services and coupons related to your Health. We publish 24/7.
HealthNewsDigest.com
We videotape Press Conferences, produce Satellite MediaTour’s, B-rolls, PSA’s, – all with distribution: HealthyTelevisionProductions[email protected]