Many Notable People Have Declared Bankruptcy Also

Category: Finance, Credit.

How can you legally get rid of debt?

America s first leaders drafted bankruptcy into the Constitution. Yes! if you know the system you can legally eliminate debt once and for all. When establishing the court structure for the United States, they specified only a supreme court and a set of bankruptcy courts. Many notable people have declared bankruptcy also. Did you know, Thomas Jefferson declared bankruptcy twice. Henry Ford, Larry King and Kim Bassinger have all declared bankruptcy.

Let s first explore 2 less extreme options. Declaring bankruptcy is just one choice for people with credit problems. One option is to consolidate your debt. Often you can arrange this loan at a lower interest rate than you had when your debts were freestanding. When you legally dissolve your debt through consolidation, you roll your responsibilities into one loan. Now you make just one fixed bill. Some people are in so far over your head that you can t make the minimums on your outstanding debt.

If you chose a formal debt consolidation program, you will make the monthly payment to your consolidator who will turn around and make the payments to all of the individual creditors. Only lowering the interest rate won t help. You can often pay only pennies on the dollar for obligations. That is when you need to negotiate with your creditors for a reduction of the obligation. Why would creditors comply? You see, they d rather get something than nothing.

Well, they re afraid that if they don t facilitate payment, you ll choose the next option which is bankruptcy. But perhaps bankruptcy is the premier option for you. It s funny but, many people find their credit scores actually rise after bankruptcy because so much bad debt is wiped away. While it has negative costs, particularly on your credit report and credit score, a Chapter 7 bankruptcy literally absolves you of all of your debt. Every year, about one percent of American households declare bankruptcy. White of the University of Michigan estimates that 17 percent of U. But Professor Michelle J.

S. households are in a position where bankruptcy would benefit them. You will be in a better position once you address your credit and financial problems head on. You can legally eliminate debt.

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A Wealth Of Information Is Contained In Your Credit Report - Finance and Credit:

A wealth of information is contained in your credit report.