The choice between Debt Counseling and Bankruptcy can be a hard one. What are the pitfalls facing the consumer? Reportedly, consumer debt is now close to $2 trillion which indicates that millions of Americans are in serious financial trouble. When they turn to debt counseling services, they may fall victim to the abuses now rampant in this fast-growing market, as a U.S. Senate investigation has recently documented. At the same time, under the new bankruptcy law of 2005, it has become much more difficult for wage earners to file. Consumers are now required to go through credit counseling before filing for bankruptcy, but there may now be a shortage of legitimate, qualified counselors since the IRS has started to investigate questionable agencies with a resulting cleanup of these outfits.
It would be wise to avoid any agency that solicits you by phone or spam email. Also, those agencies that call themselves “nonprofit” are not necessarily as beneficent as they would like you to believe. However, agencies that are members of the National Foundation of Credit Counseling are subject to very strict accreditation guidelines.
If your earnings are less than the median income in your state and your debt is mostly credit card debt, a Chapter 7 bankruptcy will discharge most of those debts. But certain debts cannot be discharged. Government loans, such as student loans do not qualify; neither do alimony or child support. However, if you have retirement accounts, they will be protected. So, between debt counseling and bankruptcy—like the proverbial rock and the hard place—the choice is not easy. Should your earnings be too high to qualify for Chapter 7, you may be able to pass the “means test” to be eligible. If not, Chapter 13 will let you pay off your debt in three to five years. Again, you have to complete credit counseling in the six months before you file, leaving you with the task to find a legitimate, qualified agency.
Whatever the outcome of debt counseling, it may leave you with some very unpalatable options. Learning that bankruptcy will stay on your credit record for ten years may make you think twice about going that route.
Debt counseling may have directed the way for you to go, but they cannot make it easier for you to actually get out of debt. If you're looking for an alternative to bankruptcy and think it would be much better to settle your debts, contact Fast Track. Their Debt Settlement Program may be the answer for you and work out much better.
The program offers ethical and dedicated debt settlement service to assist you in achieving your goals. Fast Track’s specialist will contact your creditors and negotiate with them.
When we start your plan we establish an affordable monthly payment which is deposited in a settlement account in your name. Once you have the required funds in your settlement account, we will contact your creditors and make settlement offers. We will continue to work with them until all debts in the plan have been settled. FastTrack’s goal is to settle all debts in the plan for 40%-60% of what you owe.
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INDIVIDUAL
RESULTS MAY VARY BASED ON ABILITY TO SAVE FUNDS AND
COMPLETION OF ALL PROGRAM TERMS. PROGRAM DOES NOT ASSUME
OR PAY ANY DEBTS, NOR PROVIDE TAX OR LEGAL ADVICE. CONSULT
WITH YOUR PROFESSIONAL ADVISORS AS NECESSARY. PROGRAM
NOT AVAILABLE IN ALL STATES, PLEASE REQUEST, READ AND
UNDERSTAND ALL PROGRAM TERMS PRIOR TO ENROLLMENT.