Are you seriously considering to file for bankruptcy so you could get rid of the pestilent and persistent debt collectors follow up calls? There are enough agencies in Massachusetts Debt Relief field that would encourage you to do so. Have you however looked at both sides of the coin?
Advantages of Bankruptcy
Yes, it is true that filing for bankruptcy today under Chapter 7 and Chapter 13 made the process simpler and more bearable. It is also true that filing for bankruptcy would free you for the stress about debt, foreclosure, repossession, credit harassment and so on. As you look at the option it does sound too good to be true – and it is.
Each one of these advantages listed here are true, but they come attached with excess baggage, which the scam Massachusetts Debt Relief agency might “forget” to mention. For one, once you file for bankruptcy you have this on your credit report for 10 long years. This will – in spite of anti-discriminatory laws existing – affect your credit worthiness and especially the interest rates charged for any loan you would apply post bankruptcy.
Bankruptcy can also negatively affect your chances to get a job, house loan, house on rent, buy insurance, and so on. For in depth and accurate information about filing from bankruptcy check out the Federal Trade Commission site at http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt015.shtm. It always pays to do your homework well.
Other Debt Relief Options
Before you decide to file for bankruptcy check out with the options offered by any reputed Debt Relief in Massachusetts agency; perhaps you will find alternatives that suit your circumstances better and avoid filing for bankruptcy. According to the best debt consolidation and relief agencies you could go for one or all of the following:
- Renegotiate your credit terms – Approach your creditors and request for re-negotiation of terms in the light of your present financial condition. Most creditors would be happy to renegotiate the credit terms in the hope that they would get their payment. In many cases, they would also be willing to give you a clean chit so your credit report would not suffer. This is a big bonus if you could pull it through.
- Develop a Stress Free Debt Consolidation Plan – there are many for profit and non-for-profit Debt Relief in Massachusetts agencies that would help you work out a suitable repayment plan. You would be required under this plan, to pay a certain amount to the debt relief agency, which use it to pay the debtors. In the meantime, debtor would no longer contact you for payment or any follow up about debts.
- You Could Get Another Loan – this is often a good idea if you are sure that you could repay it in time and as per the conditions it comes with. Though this is a great option, there is always the risk of losing your home – since your home would be taken as collateral – in case you fail to make your payments on time.