Friday, July 25, 2014

Get That 800 lb Gorilla Of Debt Off Of Your Back!

Debt is an 800 lb gorilla on our backs. It can consume our thoughts and have us living in a paranoid state whenever the phone rings or the mail comes. They are all little reminders of the impending doom we feel from debt.

Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?

Many people face a financial crisis at some point in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be overcome. Your financial situation doesn’t have to go from bad to worse.

If you or someone you know is in financial hot water, consider these options: self-help using realistic budgeting and other techniques; debt relief services, like credit counseling or debt settlement from a reputable organization; debt consolidation; or bankruptcy. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future. Give us a call today for relief. You needn’t walk around with that gorilla on your back.

Monday, July 7, 2014

Debt Loves Company

Debt doesn’t just consume one person at a time, in the event there is a co-debtor, (and several of your debts include co-debtors). Also known as co-signors, the people who sign with you on a debt are often family members and the closest friends you have.

By signing a legal document guaranteeing that your debt would be paid, the co-debtor is now in a precarious situation as you file for bankruptcy.

If your goal is to wipe out as much of your debt as possible, as quickly as possible, Chapter 7 would be a good choice. However, under Chapter 7, co-debtors are not protected. If you receive a Chapter 7 discharge, you would no longer have any legal responsibility to repay the debt that was also signed by your co-debtor. But creditors would then be able to collect from the co-debtor.

The only way to protect a co-debtor is to file a Chapter 13 repayment plan, although that virtually guarantees a 60-month schedule to pay your disposable income, after necessary expenses, to your creditors.