Why You Shuold Seek Alternative To Personal Bankruptcy

preliminary report by the administrative office of the U.S. courts shows that a number of Americans are “climbing” the bankruptcy ladder during the month of September 2007. The September report represents a new peak in the post-reformed bankruptcy law. It aptly reminds us of the word o f former U.S. senator, who once said “America is in the midst of bankruptcy crisis.” This is the reality today. Then, the question is not why do they go bankrupt? That would only not solve the problem but only leave some more dejected and resign to failure. The question should be what options and alternatives to personal bankruptcy are available? Is there any of such? Yes there is! There are alternatives to personal bankruptcy and they are readily available to any wiling individual. It suffices to note at this point that this article does not in any way constitute a legal advice. Thus, why you seek alternative to personal bankruptcy?

Bankruptcy does not erase all debt.
It’s no longer “business as usual,” but you can reduce your debt by 60% if you embrace the negotiation approach. Before October 2005, the process of filing bankruptcy was relatively easy, fast and an individual could easily discharge his debt obligations. Lawyers’ ads were: “get out of debt easily and quickly” The reformed bankruptcy law however, laid much emphasis on repaying creditors. Thus in cast of (chapter 7) bankruptcy, which happens to be the most common one, you may have to surrender valuable items to the courts for the good of your creditors. Bank account, jewelries, pleasure boat, stock investment and other non-exempt items

To avoid this fate, it is strongly recommended that an insolvent should consult professional debt negotiator. And, if your situation qualifies you for that benefits, you may have debt reduce by up to 60% in no time. This negotiator consults with your creditors and presents them with your plan to pay the remaining amount, depending on the percentage they are willing to reduce. Most creditors welcome this approach because; they realize that if you file for bankruptcy they may loose all you owe them. In addition, when a consumer files for bankruptcy, creditor can only collect any amount due to them at extra cost. In most cases, they will have to use a number of collection methods, and spend a proportion of what is due them on legal services. Therefore, foresighted creditors always welcome negotiation. Through this process they can collect the remaining one easily and quickly at no additional cost.

One reason why you should use debt negotiators instead of going it yourself is that negotiators sometimes represent thousands of consumers with total debt running into the billions. Owing to this fact creditors always find their proposal irresistible. They are well aware of how much they can recover by acceding to negotiator’s request. Thus, through negotiation, you can discharge your debt legally. No loan, no personal bankruptcy!

Bankruptcy may cling to you for a lifetime
Another reason why you should seek alternative to personal bankruptcy is that bankruptcy may blemish your financial profiles for a lifetime. In the process of filling application for credit, are you not often asked if you have ever filed for personal bankruptcy? Why do they ask? And how would you answer? Can you escape the fact perhaps by giving the wrong answer? Be careful! That would be a very serious federal offense. In fact, bankruptcy ruin you financially because impact negatively on your credit rating for a very long time. In some cases, it may take up to two decades to erase.

All indicators point to alternatives to personal bankruptcy as the best choice. If you are declared bankrupt today, are you sure you will not find yourself in the same situation tomorrow? How many times do you think you can file bankruptcy in a lifetime? Besides the fact that law of the United States backs bankruptcy, it has serious effects on others. Bankruptcy also involves moral uprightness. Why? At the point of purchase, mortgage loan application, car loan application, and credit cards application the consensus is that I will pay. Suffice to say that this is personal opinion, and in no way a generalization. The most important reason why you should seek means to pay off your debts is the moral obligation involve. That is my strongest reason. What about you? Seeking the available alternatives to bankruptcy demonstrates integrity, fidelity and love.