3/20/2021 0 Comments Bankruptcy Solutions - Avoid Bankruptcy and Find Bankruptcy Solutions For Your Financial SituationBankruptcy Solutions provide alternatives to full bankruptcy. In these cases, a debtor is granted a discharge form that allows him or her to repay debts in accordance with an alternative repayment plan. Bankruptcy solutions are available through debt management companies. Bankruptcy solutions include: payment plans, payment deferments, and income-based repayment plans. (Many states offer similar programs.) Some states allow creditors to pursue collection on the property instead of the delinquent amount, which can result in an additional property tax. If you want to know more about this service, here is some more info. Debt consolidation is one of the most popular bankruptcy solutions available today. Under this program, all outstanding debts are combined into one monthly payment. This payment is then distributed to all account holders, in order of their priority. In many cases, the interest rate is reduced and the total debt is reduced. Once all debts have been settled, the financial situation is much more stable and borrowers are able to begin making responsible payments again. Another type of bankruptcy solution is debt settlement. In this option, the debtor and creditor agree to settle for less than the balance of the debt. For example, the debtor and lender may agree to settle for fifty percent of the original balance. A debtor chooses this option when he or she is unable to pay current expenses, such as credit card debt. A lender might also accept a settlement offer, if it is lower than the current market value of the debt. This enables the debtor to pay the remaining debt within a reasonable time frame. Other bankruptcy solutions are available to deal with short-term financial problems. Under chapter 13 bankruptcy protection, a borrower has the option to declare bankruptcy. This declares that all of the debts are unable to be paid and all assets are sold to cover the debt. A judge then makes the decisions about who gets what. Another option is a consolidation loan. A consolidation loan allows you to combine all your debts into one monthly payment. A professional financial situation lawyer can help you obtain a consolidation loan. The benefits of a consolidation loan include; combining multiple payments into one payment, fewer interest rates, a fixed interest rate, and no minimum balance. Many people use this type of loan to catch up on past due bills or to eliminate collection calls. One of the most effective bankruptcy solutions bankruptcy protection is to file a petition to dismiss an unfavorable federal tax lien. When you file the petition, the IRS cannot charge additional taxes against you until the bankruptcy case is completed. This will prevent the lien holder from collecting past due penalties and interest charges. It is also beneficial for anyone with a large medical bill. Medical bills can be very expensive and with a large tax lien the debtor could be charged double the amount that they were able to pay when filing for bankruptcy. Get more facts on the topic by reading this blog: https://en.wikipedia.org/wiki/Bankruptcy_alternatives.
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