Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order.

Bankruptcy is the most drastic method available for dealing with debts you cannot pay. It can however set you free from overwhelming debts so you can make a fresh start, and makes sure your assets are shared out fairly amongst your creditors. However there are many implications of bankruptcy. During your bankruptcy you will be subject to several restrictions, which can be avoided through an alternative to bankruptcy such as an IVA. Anyone can go bankrupt, and there are different insolvency procedures for dealing with companies and for individuals who become bankrupt.

Applying for an IVA is a regularly looked at as an avoidance from bankruptcy. The IVA enables you to cut your debts to an affordable level and clear them over a fixed period. The compromise should offer a larger repayment towards your debt than could otherwise be expected were you to be made bankrupt. You can even take out a fresh mortgage while in an IVA. What’s more, it is a totally private arrangement - nobody needs to know about it apart from you, your advisors and your creditors. An IVA ensures that your home is protected and your job is not at risk and with The Debt Line an IVA can write off up to 75% of your debts.

There are so many advantages of an IVA. For example, there is not the stigma or the publicity that normally accompanies bankruptcy and the debtor can continue to trade in a business to generate money. It can give the peace of mind to have a fresh financial start.

The implications of bankruptcy are simple. Some of these disadvantages are: loosing control of your assets, not being able to act as a company director (if you wish to do so), being publicly examined in court and your credit being affected for many years after the annulment. It seems that as far as The Debt Line are concerned, the bankruptcy route could be very much avoided.

One in 8 of those with five-figure debts say they are ‘quite likely’ or ‘very likely’ to declare themselves bankrupt. Also, with an interest rate rise looking more and more definite, these figures are expected to grow. With the help of The Debt Line a growing number of people will be finding alternative ways to get themselves out of debt.

However, people tend to overlook this nugget of wisdom when it comes to managing their credit cards. The average person is said to hold as many as seven credit cards at a time – all of which are being actively used.

Just keeping track of expenses made is difficult enough. But then one still also has the unfortunate task of keeping track of the varying interest rates for every card – a difficult task, even for experienced credit card users.

Unfortunately, when these complicated but important tasks are left unmanaged, interest can accumulate until one finds out, a bit too late, that they have incurred a considerable amount in debt.

Fortunately, there are solutions to that problem. One of which is credit card consolidation. It is a basically putting together the balances from different credit cards and paying it off with a single card of a lower interest rate.

This solution works allowing the person in debt these advantages:

1. Payment manageability
This solves the problem of needing to keep track of different payments for different bills. This alone helps alleviate anxiety as a single statement tends to overwhelm a person less, compared with a series of bills.

2. Lower interest rates
By transferring your balances to a lower interest card, you stop the accumulation of higher interest from other cards and avail of a lower finance charge for your consolidated debt.

However, that said, this solution is not a general fix-all for all debt holders. Considerations need to be made before credit card debt is consolidated.

Part of it starts by taking stock of how one got into the situation in the first place. This means looking at the present collection of credit cards and their interest rates. If they all have the same rate, then consolidation may not be necessary.

Another consideration is the usage for these cards. Ideally, credit cards should be used only to bridge gaps in cash flow. But when it becomes the primary method to pay for food, utilities and other bills, the solution may need to be more than simple consolidation. More serious and in-depth financial counseling may be necessary.

It is also important for one to choose wisely as to which credit card will be used to consolidate other cards with. Simply going for the one with the lowest interest rate may not be the best solution. One has to be able to see well into the next 6 to 12 months as the debt is paid off. Will the lower interest rate hold for that duration or will it increase rapidly within that time? A manageable rate is generally around 15%.

Consider the duration of the grace period for each card. Availing of the lower rate may not be possible if payment is not made by due date. The length of the grace period then becomes helpful as it allows more time to pay without incurring additional finance charges. In general, a 25-day grace period is a good offer.

Furthermore, remember that consolidating credit card debt is just part of the general debt management program. Another important aspect is preventing further debt, which means significantly lowered credit card use. Many fall into a false sense of security because of having only to deal with one account statement. One then begins to use credit cards again as carelessly as before, therefore perpetuating a vicious cycle.

As it is with most things, credit cards are simply tools that can be mastered rather than the other way around. This can be prevented if discipline in managing one’s resources is learned and honed and applied in all future transactions.

In the old days they would send people to debtors prison or even put them to death (not in America though), treating them like criminals. In these more civilized times the government not only banned this kind of barbaric action but made into law rules to protect us.

The bankruptcy code, also known by title 2 of the United States code (11 U.S.C.,101-1330), has been put into place to protect the rights of the individual and corporations, giving them a fighting chance against dept collectors, bankruptcy courts having the final word. There are basically two kinds of dept, secured an unsecured. Secured is where the creditor has some kind of collateral, be it your car, boat, house, or any material thing of value that they can take possession of if the dept is not paid. Unsecured is simply just the opposite, where the creditor has no collateral at all. In this case if the dept is not paid all they can do is use a collection agency where they call you day and night. Also you have to watch out with an unsecured dept because if the balance is large enough the creditor can put a lean on your property by getting a court order. This will prevent anyone from selling their house and moving away in an attempt to hide from creditors.

If you or anyone you know is behind on payments there is something they should know. Since 1997 the government stepped in to stop dept collectors and collection agencies from harassing and threatening people in the middle of the night and using unethical collection practices. The Fair Dept Collection Practices Act (FDCPA) makes collections agencies follow certain guidelines. These are things collectors must do:

*Stop contacting you if the request is in writing and you dispute the dept in writing.

*Within 5 days of there first contact they must send you a letter stating the outstanding dept and creditor.

*If you want to dispute all or part of the dept the collection agency must stop contacting you until the creditor responds to your inquiry.

*If the collection agency wants to take you to court for the dept owed on behalf of the creditor it should summon you to the county where you now live or where you first singed the contract.

Now, don’t be alarmed just because a creditor threatens to sue you because most times it is just meant to scare people into paying on depts.

Under the act (FDCPA) there are many things collection agencies can’t do, some of which are:

*No calling you at work

*Indicating they may be working with the federal government

*No calling your friends or family

*Implying that you may go to jail, garnish your paychecks unless the dept holder plans to do it

Our government, in its infinite wisdom reasoned a long time ago that if they send everyone to jail there is zero change of collecting on any dept on behalf of a creditor. You probably have heard of someone that has had there wages garnished, that is creditors who get a court order to take a piece of their check until the dept is paid. This is a common practice in states that allow wage garnishment and there is little you can do about it except for contacting an attorney. Did you know if you have an unpaid school loan or owe the IRS they don’t even need a court order to garnish wages, even in states that normally don’t allow this? You can bet on it, they can also take your tax refunds!

As for personal property, in cases like a store dept (store credit card, personal check or payment plan) on an item like major appliances or furniture you may have bought they still need a court order to take it back, unless you let them in anyway. That’s right! If you let them in without a court order they can come and get it back! Many times if is just not worth it for them to re-possess items because they have to go the process of getting a court order and pay someone to carry it out. Also it may be harder to sell a used item that may be stained or damaged. One final word on this point, remember on secured loans and cars there is a definite risk of repossession if the loan (mortgage or car finance) is not paid. There is usually too much money involved here for creditors to loose so these payments should be on top of your ‘to pay’ list!
If you find collectors are not playing by the rules you should call an attorney or the Federal Trade Commission’s response center at 1-877-382-4357 (FTC-HELP)
You can check out FDCPS’s website at www.ftc.gov/os/statutes/fdcpa/dcpact.htm for more info.

debt consolidation loan without owning a home
However, before taking any decision about debt consolidation, you have to familiarize first some important points about it — debt consolidation loan online

It is essential that you consult a debt consolidator expert on the best way to consolidate your debts if you are thinking of doing so. A debt negotiator expert is one who is totally skilled at bargaining and negotiating debt terms. A good debt negotiator will ensure that you walk away with the best debt consolidator deal.

Debt consolidation loans help to ease worry and anxiety from your mind because it enables you pay off your outstanding debts. Thanks to debt consolidation loans, you can easily do away with all those credit card debts that are scattered all around the whole place. Consolidating your debts help to bring clarity and purpose to your debt payment plans.

It can be very embarrassing to have creditors knocking on your door because of your debts. Many debtors have been dragged to court over credit card debts. With the right debt management loan, you can easily avoid the embarrassment of house calls and court orders related to debts.

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You can consult institutions which you understand have full knowledge about loans– credit card consolidation companies. In this way, you will get addition information which may be helpful when you are to deal with debt consolidation matters.

free debt consolidation companies
Deal the debts of Christians. bank one credit card consolidation help to negotiate loans for their clients and ensure that their debts are managed. If you are a Christian with a desire to manage your debts, you can consult a Christian debt consolidation company.

Apart from debt consolidation loans, there are more methods to get rid of debt. Some people get rid of debts by taking up two jobs to increase their source of income. But many people say that debt consolidation is the quickest way to pay off credit card debt.

An ideal candidate for a debt consolidation loan is a person who has enormous credit card debts. Credit card debts can keep you in perpetual misery and penury too. With a good debt consolidation plan, you can live your life with some measure of financial release.

Do not trust all the low interest offers that most debt consolidation companies give as they may be bogus half the time. Avoid debt consolidation programs that try to get you to join one affiliate program or the other. Try to research other debt consolidation options before you make any choice.

The use of credit has become an everyday situation, but it is quite shocking if one takes into consideration that your average household has an outstanding debt of $ 7,000 in debt.Credit card debt has some negative aspects which can make one’s life more complicated.

First, debt places stress on families, as they worry about how best to relieve their financial burdens.During this time the debt escalates due to continuing charges of interest and late fees.Generally when someone is in hot water they tend to make some bad decisions, such as taking out a loan to cover the debt they have due to their credit cards.The bad news continues as the credit ratings may be very negative and it can cause problems if you want to purchase a car or even a house.If you are to the point that you are using one credit card to pay off another, you should consider a credit consolidation loan.

One should never conceive a debt consolidation loan to be an easy fix to your debt problems or your poor credit record.What it basically boils down to is that if you have a dept consolidation loan it will decrease your monthly debt, may save you elevated interest costs and will help you establish a monthly budget you should follow very closely to avoid further problems.The vital aspect here is that if you strictly adhere to a budget and follow it well your credit rating will gradually become better.Over time the situation will improve and your debt problems will be written down as history.

Now if you have decided to take out debt consolidation you may wonder how much your monthly installment will be. The consolidators will negotiate the lowest amount possible which your creditors will allow.At this point, all you have to do is make the payments to your consolidating company, and the company will be responsible for distributing your money to your creditors.

After you have dealt with the situation it should encourage you to totally avoid using a credit card and to spend only what you have.Anyone who has had bad debt knows that it can become a wearisome situation and to borrow cash to pay off your debt is pointless.The temptation to pay with credit will be strong (it is the great American addiction, after all), but the penalties for out-of-control charging outweigh the temporary pleasure of the purchase on plastic.Learning to manage one’s finances responsibly is far more rewarding in the end.

I also get to use the book as a tax deduction that is pretty cool. Have a great day. If you’ve read the book, please provide some feedback.

cd :O)

Furthermore, we aim to provide you tools to stay out of debt and eventually to manage it in a healthy manner once again. 

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Have a great day.  cd :O)