Discover Your Options for Debt and Bill Consolidation

Discover Your Options for Debt and Bill Consolidation by Jon Arnold


If you have been feeling overwhelmed by debt and bills piling on, and do not feel like you have any options left, then you should be aware of the fact that debt and bill consolidation is a real option that may be available to you. Bankruptcy is not your only option when you cannot catch yourself up with bills and debt, as debt and bill consolidation services are out there and looking for people like you who want to regain control over your finances. Each debt and bill consolidation service is different, so the first thing that you need to do is to find the service which best fits your needs and capabilities regarding paying off old debt while still maintaining your current bills.

The purpose of a debt and bill consolidation is to take all of your current debt, and the amount that you pay into bills each month, combining it into a much simpler and lower payment. By paying one single payment each month, you no longer have to worry about making sure your individual bills are paid, as it is done for you. While paying for your normal every-month bills, you will also be paying your debt off little by little. Debt and bill consolidation services are designed to help you pay off your debt as a long term strategy, without disrupting your ability to pay current bills off every month.

What debt and bill consolidation does is that it combines all of your debt together. In many cases, debt consolidation services can negotiate lower debt amounts, saving you hundreds of dollars in the process. A debt consolidation service will give you a term length, and you will pay off a part of your debt little by little for the span of a few months or a few years until you have no more debt. What sets debt and bill consolidation apart from regular debt consolidation is the fact that these services also take into account your other monthly bills, such as rent and utilities, to make sure that you can meet all of your obligations while simultaneously working on your debt.

There is a danger that as your credit card debt is being reduced, you will be tempted to max out those accounts again. Don't do it! That is what got you into trouble the first time, so give yourself some financial breathing room and let the service work for you.

There is no reason to file for bankruptcy these days, because there are better options out there for you. The best part about debt consolidation is there is typically nothing negative left on your credit report once your debt is paid off. If you file for bankruptcy instead, you will be living with a serious black mark on your record for at least seven years! So do not ruin the next seven years of your life by filing for bankruptcy when something better is out there for you. There is sure to be a service out there which can cater specifically to your needs, it simply takes patience and willingness to do some research until you find a service which can help you out!


About the Author
For more insights and additional information about Debt and Bill Consolidation as well as getting a free no-obligation debt consolidation loan quote, please visit our web site at http://www.debtconsolidationstrategies.com

Alabama Bankruptcy - 3 Facts You Must Know

Alabama Bankruptcy - 3 Facts You Must Know by Dawn Hall


For anyone thinking of filing personal bankruptcy in the "heart of Dixie", as Alabama is affectionately nicknamed by its residents, this information is for you.

In Alabama (as well as the other 49 states), the two types of bankruptcy commonly filed by individuals are Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy proceeding, a court-appointed bankruptcy administrator takes possession of any nonexempt assets, sells them, and then uses the proceeds to pay creditors. The discharge is generally entered a few months after the petition is filed.

In a Chapter 13 bankruptcy proceeding, the individual filing bankruptcy proposes a plan to repay debts over a three to five year period. This plan must be approved by the Court, and plan payments are paid to the bankruptcy administrator, who then disburses the payments to creditors based on the terms of the approved plan. The discharge is not granted until the conclusion of the repayment plan.

If given a choice between Chapter 7 and Chapter 13, most people will pick Chapter 7 because it requires no repayment of debts and is over much quicker. However, bankruptcy laws enacted in 2005 place conditions on who can actually file a Chapter 7 bankruptcy petition, which brings us to...

Alabama Bankruptcy Fact #1

The bankruptcy laws enacted in 2005 impose a means test to determine if a person can file Chapter 7 bankruptcy. There are two ways to pass this means test.

The first way is to compare the household income of the person filing to the state median income. The annual income, calculated using the average gross income for the six-month period prior to filing, must be below the state median. Currently, the median income for a family of four in Alabama is $55,424.

If household income exceeds the median, a person can still file Chapter 7, based on the results of a means test calculation. Bankruptcy Form 22A is used for this calculation.

Additional information regarding the bankruptcy means test can be found on the U.S. Trustee Program's Website at http://www.usdoj.gov/ust.

Alabama Bankruptcy Fact #2

As stated earlier, the bankruptcy administrator in a Chapter 7 proceeding will take possession of nonexempt assets and liquidate them in order to pay creditors. The next obvious question - what exactly is exempt in Alabama?

Unfortunately, the answer is "not much". As of this writing, Alabama allows a $5,000 homestead exemption and a $3,000 personal property exemption. If the homestead is jointly owned by a husband and wife, each may separately claim the homestead exemption. There are other exemptions, and the laws may change at any time, so make sure you consult an attorney before you file bankruptcy, which brings us to...

Alabama Bankruptcy Fact #3

Many people who file bankruptcy without counsel do so because of the belief that they cannot afford an attorney. Truth is, bankruptcy is a complicated legal matter and you can't afford not to have an attorney. In addition, for those who really can't afford a lawyer, there are sources of free help. It's just a matter of tracking it down.

Start by calling your local bar association. They will be able to refer you to local attorneys and organizations that may be able to help you. If your local bar is unable to help, contact the Alabama Bar. Their contact information is available at http://www.alabar.org.


About the Author
Dawn Hall is a freelance writer who worked as an assistant to a Chapter 7 bankruptcy trustee. She is currently developing a free online Chapter 7 bankruptcy resource guide. Visit her website for more information regarding Alabama bankruptcy.

Bankruptcy and Student Loans

Bankruptcy and Student Loans by T. Houser


Many people are under the impression that bankruptcy and student loans go together. When faced with outrageous prices for education it would seem that it would be an answer to many seeking relief. However, they do not mix and it is extremely difficult to have them discharged in a bankruptcy court.

Interestingly, in the 1970's it became common practice for someone to attend school and then file bankruptcy and student loans would disappear. It was a sure way to get a free education. Of course, as these cases grew, the government decided to limit the availability of this option. It became increasingly difficult to file for bankruptcy right after school. The common practice was now to wait at least seven years so the loan would be old. In order to file a person simply had to show that they had made their first payment seven years prior and that the loan was causing undue hardship. It was easy to prove the benefits of filing for bankruptcy.

In October 1998, the issue of bankruptcy and student loans again came to the forefront. The court ruled that such a case could not be filed and discharged unless three criteria were met. A person could not open a case unless they met this criterion. The first of these criteria is that you must prove to the court that you cannot keep up with your payment schedule. The second criterion is that you must prove to the court is that you are unable to pay in the future and that your financial situation is permanent. The third and final criterion is that you have made a good-faith effort to pay them back. If and only if you meet all of these criterions, may you open and file a bankruptcy and student loans case.

Even if you meet all of the requirements for opening a bankruptcy and student loans case, there is no guarantee that your loans will be discharged. It will depend on the judge that is hearing your case. Some judges will discharge some of the loans and leave you to pay part of them. Some judges will hear your case and will not discharge any of your loans. Once in awhile, a judge will take your particular case under advisement and discharge everything. This is extremely rare, but it is possible. It is not easy work to get a bankruptcy and student loans case discharged!

When you pursue your education, act responsibly and think before you apply for a student loan. Without foresight into your future, you could find yourself filing a bankruptcy and student loans case and damage the very future you have been working so hard to achieve.


About the Author
All things Bankruptcy including Bankrutpcy Marketing and Personal Bankrutpcy Issues. by T.D. Houser