debt consolidation

What Is The Downside of Filing Bankruptcy in Staten Island

Many people who are in debt, often contemplate filing bankruptcy. Many people who are thinking about filing bankruptcy in Staten Island research all of the bad conotations that go along with filing bankruptcy and  wonder “What is the downside of filing bankruptcy?” For people who are riddled with debt and can barley make ends meet, filing bankruptcy often has more advantages than disadvantages. If you have been falling behind on your debts, filing bankruptcy is a legal way to get your debts eliminated. 

How to Cancel a Debt Settlement Contract

Can I Cancel My Contract With a Debt Settlement Company

Many clients come to use seeking to file bankruptcy whom have entered into a contract with a debt settlement company. Many times, people believe that signing up with a debt settlement company can help them get out of debt and have little impact on their credit score. Many assume that debt settlement won’t hurt a credit score as bad as a bankruptcy would. This is false. Credit card companies won’t even negotiate debts until you have fallen behind atleast 90 days. Debt settlement companies offer to negotiate debts for a lump-sum payment for a fraction of the price. However, they fail to tell consumers that as their accounts continue to go into delinquent status, the impacts on their credit score can be severe. Debt negotiation can take anywhere from 36 to 48 months. This is almost three years of accounts being in delinquent status. During this time interest, fees and penalties continue to accrue. Most consumers can’t keep up with these payments and thus, never make it to the end of any debt settlement plan. 

Debt Settlement Companies What They Hide

When you find yourself struggling to pay your credit card bills or falling behind on debt, it can seem overwhelming. It is a good idea to find a bankruptcy lawyer who can give you the proper advice. The worst thing you can do is continue struggling, and not seeking out any help to manage your debt. If you are facing debt, there are a lot of good resources on our website to help you decifer which route to go. Our Staten Island bankruptcy lawyers and New Jersey bankruptcy lawyers can help you, by giving you a free consultation. This article will explain what debt settlement companies do and what you need to know about entering into a debt settlement program. 

Debt settlement companies are not the same as credit counseling companies or debt lawyers. A debt settlement company will work with your creditors to negotiate a certain portion of debt you will have to pay back. Debt settlement companies won’t tell you that for your credit card companies to work with them, you will have to fall behind on your bills. This means that even though you may not want to file bankruptcy, because your worried about your credit score, debt settlement will have the same impacts as bankruptcy. As you continue to be late on your monthly payments, late fees, interest and penalties will continue to accrue. When you have fallen far enough behind the debt settlement company will contact your crediors and settle for a percentage of the total debt you owe. Keep in mind, that as your accounts go into delinquent status, you run the risk of having credit card companies suing you and getting judgments against you. Once a judgment is filed against you it can last for up to 20 years. Moreover, to enforce a judgment creditors will garnish wages, freeze bank accounts, and put liens on any real property. 

Credit Card Debt Basics and Bankruptcy

In an economy where the coronavirus is dominating headlines, people are out of work and unable to pay their high interest cred cards, debt still remains one of the largest issues that consumers struggling financially face. 

Credit card debt, divorce and medical bills are some of the biggest reasons consumers are forced to file bankruptcy. If you are struggling to make your minimum credit card payments, you are not alone. Most people in New York are strugging with large credit card bills every day. 

When A credit card account has been delinquent, or unpaid, for more than 180 days, banks will charge off this debt. You may see something on your credit report that says “charge off” with a $0 balance. Many assume this means that the credit card companies are letting that debt go. This is abosultely wrong. When a “charge off” is reported by the credit cureaus it means that the debt has been sold off to a debt collection who will call, harass and even sue you. 

Fair Debt Collection Practices Act Lawyer

How To File Bankruptcy In Staten Island, New York

To determine if you should file bankruptcy in Staten Island, you will need to determine where to start. Karra L. Kingston Esq. can help you and give you an overview of the bankruptcy processs. Our bankruptcy lawyers can walk you through the process and provide you with great resources to help you get out of debt. 

FILING BANKRUPTCY ON UNSECURED DEBT

Many individuals file bankruptcy each year because they are riddled with unsecured debts. Unsecured debt is debt that is not attached to anything. Some of the most common types of unsecured debt are credit cards, medical bills, personal loans. Secured debts, on the other hand, are secured by collateral. For example, a mortgage is attached to property by a lien. If the lien goes unpaid, the mortgage company can foreclose and take the home.

Filing Bankruptcy Impact Credit Score in Chapter 7

Individual Bankruptcy Filings on the Rise in New York and New Jersey due to Coronavirus

According to one study done by the New York Post, one in four Americans do not have enough money saved to cover more than two months of expenses and one out of every four people doesn’t have any savings. Moreover, a poll conducted on behalf of Chase bank showed that 40% of adults wouldn’t be able to cover unexpected expenses of more than $400. With the uncertainty of the coronavirus and these statistics, many individuals in New York and New Jersey will be forced to file bankruptcy. 

Filing Bankruptcy Impact Credit Score in Chapter 7

Can I Own Anything After I File Bankruptcy?

Many people often ask us how filing bankruptcy in New York or New Jersey will impact them after their bankruptcy is completed. Many people often ask us “can I own anything after I file bankruptcy?” The answer to this question is simply, yes.

Bankruptcy

How Much Debt Do I Need To File Bankruptcy

If you are wondering how much debt you have to be in to file for bankruptcy, you should know that there is no minimum set amount. In order to determine if you should file for bankruptcy, you should consider how much income you have and if you can afford to pay back your debts.