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credit score ratings for over 12 years. With an extensive background in the banking, credit scores and financial industry, she now shares the best of her credit score information as a contributor and editor of http://www.creditscoreresource.com ">You can find debt cures for even the most desperate financial situation with a little flexibility, patience, and creativity. It is important to understand debt cures other than bankruptcy before deciding to take such a drastic step. Keep in mind that anything other than fully repaying your debts on time as agreed will significantly damage your credit score for at least a couple of years. CONSIDER FILING CHAPTER 7 BANKRUPTCY IF YOU JUST CANNOT PAY THE DEBTS. Chapter 7 bankruptcy sounds scary, but is still one of the most viable debt cures. New bankruptcy laws make it more difficult for people to file, but if you make below your state's median income you likely can qualify for a complete liquidation of most consumer debt. However, this is a last-resort solution, and requires discipline and new habits to avoid needing to file multiple bankruptcies in your lifetime. As of 2013, it costs $306 to file Chapter 7 bankruptcy without an attorney's assistance. If you have significant assets such as real estate equity, you should not file bankruptcy without legal advice. CONSIDER A COURT-SUPERVISED OR A PRIVATE RESTRUCTURING OF DEBT. Chapter 13 bankruptcy enables people to keep their car and home while having consumer debts restructured and repaid over two to five years under court supervision. This is one of the most popular debt cures, especially since Chapter 13 cases cause less credit report damage and allow consumers to keep most if not all of their assets. Most working Americans should qualify. However, it is also not to be entered into lightly. The court costs as of 2013 are $281. An alternative to Chapter 13 may be to use a debt consolidation company that does the restructuring for you at a fee. However, you lose a lot of the legal protections of bankruptcy and some companies charge more fees than is really reasonable. Those fees could go toward saving for the future, but as always debt cures rely upon personal preference. Utilize the Yahoo! Search engine and the Better Business Bureau to check a company’s reputation before you sign any paperwork with a non-government debt relief agency. Ethel Wilson has been advising clients on how to improve their credit score ratings for over 12 years. With an extensive background in the banking, credit scores and financial industry, she now shares the best of her credit score information as a contributor and editor of http://www.creditscoreresource.com
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