Creditors and debt settlement companies make money by keeping you in debt. That’s why the don’t want you to know that under federal law you have a right to eliminate most, if not all, of your debt.
Bankruptcy can eliminate your debt for a fraction of what you would otherwise pay to the creditors or debt settlement companies — and in way less time.
The credit industry does everything they can to restrict debtors from filing for bankruptcy. Creditors can be aggressive and often try to discourage and frighten people in order to collect on debts.
Bankruptcy is the most effective way to eliminate overwhelming debt. Credit companies spend a lot of money and do a lot of work to promote anti-bankruptcy PR campaigns in order to make sure that the word “bankruptcy” remains clouded in false information. They do this because they don’t want you out of debt so they put a lot of effort into suggesting credit consolidation. Also because charging late fees and obtaining huge interest is big business and big money. Many of the debt consolidation companies are actually owned by the credit card companies!
While in the past bankruptcy laws were a little restrictive, it’s not the case nowadays. It’s true that recent laws have relatively more paperwork and steps for bankruptcy filings, but this burden will be mostly on your bankruptcy attorney and not you.
Creditors want you to think that if you file for bankruptcy, you will lose all your personal belongings, your car, and your house. However, the truth is that most of the petitioners keep all their properties.
Bankruptcy pauses repossessions and foreclosures, stops collections and garnishments, and prevents property repossessions via creditor judgments. As soon as you file for bankruptcy you are protected from your creditors.
You can rebuild your credit fast. Another secret most creditors don’t want to you to know about is that you will be able to work on repairing your credit score once your debt is discharged. In fact, many individuals get approved for a loan or a secured credit card within a year after filing bankruptcy.
Most people who file bankruptcy are good people who have experienced difficult times. Creditors want you to think that only deadbeats file for bankruptcy. It is not true as most of the petitioners get into financial trouble due to a job loss, unforeseen medical expenses or divorce.