Debt Settlement May Be Ideal, But Difficult While Atlanta Bankruptcy Works
The Wall Street Journal recently published an article with tips on how to settle debts.
While the article has good information and ideas that could work for some people, only filing for bankruptcy in Atlanta will guarantee that debts be discharged forever.
Bankruptcy laws were created with the consumer in mind. Government officials realized that consumers could sometimes make big mistakes, but that they deserved a second chance. And given that companies and governments have a larger pool of money, the laws assume they can absorb a loss more than a family trying to put food on the table.
The same holds true today. Millions of people are forced to consider bankruptcy because of expensive medical bills, joblessness and predatory lending practices by credit card companies and banks who charge high interest rates and many fees to borrow money.
Atlanta bankruptcy lawyers have seen many people struggling with debt being saved by bankruptcy after they felt there was nowhere to turn. Carrying a lot of debt is a difficult habit to break, and creditors don't do a very good job of helping consumers who are trying to right the ship.
Here are some tips from the Wall Street Journal that suggest alternatives to bankruptcy. While the article does suggest bankruptcy is an option, this looks at ways to avoid bankruptcy. The article focuses on a debt settlement, which is easier said than done.
Before settling, look at other options
-Try to squeeze extra cash out of your budget
-Take a part-time job or try to sell things at auctions such as eBay
-Consult with a debt-management counselor
Build your case
-Gather financial documents to prove you can't afford payments
-Show that you've been laid off or endured medical bills
-Save the debt-settlement offers made by creditors for comparison
-If creditors know you're willing to settle, go after the biggest fish in the pond first
-Focus on payments that are affordable
-Consider tax implications -- debt forgiven above $600 is reportable as income
What you shouldn't do
-Don't lie or leave out important information
-Don't avoid the problem; address it
-Don't skip payments on purpose
-Don't trust a debt-settlement scam artist
While these are all good tips, this assumes that creditors are willing to work with consumers. First of all, they can usually make more money by seeking wage garnishments or repossessing your things than they can in a debt settlement, especially if there are a dozen other lenders lined up with their palms open.
Filing for bankruptcy is the only thing that truly scares creditors and gets them to work with you. Going to a creditor on your own is a big job and should be left to experts. But filing for bankruptcy will provide instant relief rather than mere possible debt relief.
Even most credit counseling agencies will cost debtors something and companies that guarantee they will help for an up-front fee are usually scams. Bankruptcy immediately stops creditors from calling and gives you the breathing room to address your finances.
If you need to speak to an Atlanta bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis.
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