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Debt Settlement – The Positive Side

Bad liability is a problem faced by people all over the world. If these liabilities are not handled in a proper manner, legal charges can be brought against you. Some financial companies will help you to find a solution to these problems through debt settlement.

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Debt settlement is the process where you agree to pay off your debts to an entity in a lump sum.The advantage here is that, through negotiation, the lump sum can be anywhere from 20 percent to 75 percent of the original sum owed. The amount actually depends on how good the negotiator is and how lenient the lender feels about the whole situation. Generally, a good financial firm will be able to get you around 50 percent off of the original sum owed.

To get this concession, you will have to provide documentation that is requested by the financial company. Only when the details are verified will the company begin to take any action. The company will advise you on how to proceed and in the event that you have a source of regular income, they will provide you with a loan to pay off the lump sum.

But debt settlement is not for everyone. If you are close to bankruptcy but are not qualified to file for Chapter 7, then Debt settlement may be the only solution for you. Although debt settlement can be used in other situations, the abovementioned example is the ideal time to utilize this method. It is advisable to seek professional advice before engaging in any debt settlement procedures.

Posted By: 1 Stop Service

Bad Credit Cards and Their Usefulness

If you have poor credit history, then you have no choice but to resort to a Bad credit card. Unfortunately this is a, minefield in terms of financial safety, to get into.

Bad credit card companies are notorious for their high and quite often unfair interest rates. They have very low standards when it comes to valuing your credit rating. This makes it easy for anyone to get a credit card from them. However, when you have a need to resort to one of these companies, don’t choose one on a whim. You need to do extensive research before you take a decision.

Every credit card has its own peculiar set of rules and regulations. You need to understand everything that is stated in the terms and conditions. This is because they can offer you low interest rates and then catch you out with hidden charges and a whole load of restrictions. You also need to check on other fees like over-the-limit fee, late penalty fee, annual fee, etc. One more thing to keep in mind is that the interest rate is usually based on the Prime Rate, which can change abruptly.

But the silver lining here is that by choosing a Bad credit card company that reports to the three major credit bureaus, you have a good chance of improving your credit status. Assuming you make payment promptly, these payments will be reported to the bureaus. Thus your credit rating improves.

The Different Types of Bankruptcy

Debt is an unfortunate facet of life that some people have to face. Sometimes it becomes impossible for a borrower to pay off the debts that are owed. To protect the individual or the company to a certain extent, the government has made available bankruptcy proceeding that they can resort to. This helps them avoid certain lawsuits that can be brought against them by the creditors. It also allows them a chance to protect properties and stay in possession of some assets.

Chapter 7 – This is the least uncomplicated of bankruptcies. Individuals, business partners and even married couples can apply for this. A representative from a Credit Counseling Agency has to interview the party in question before the filing takes place. Along with an appearance in court, the proceeding usually last about three and a half months. Upon a successful outcome the party in question is released from past unsecured debts. Thereafter a trustee is entrusted with the task of identifying assets that will be exempted from bankruptcy. Whatever is leftover if liquidated and used to pay off the creditors.

Chapter 9 – This law is meant for municipalities. Because municipalities could be public agencies or political subdivisions it tends to be much more complicated.

Chapter 11 – Used by business corporations, there are no trustees in this situation. The corporation has to formulate a reformation plan, which may include plans to recover productivity, repay debtors by selling assets, debt consolidation, merging, etc.

Chapter 12 – Designed for farmers and fishermen only, it allows them to keep their assets and pay the creditors with future earnings.

Chapter 13 – Similar to the previous chapter, it allows the individual to keep their property and pay creditors with their future salary. An agreed percentage of the salary (10 percent or more) is allocated to pay off the debts.

Posted By: Debt Settlement Online