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Getting a Bankruptcy Loan

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Getting a bankruptcy loan, sometimes known as a consolidation loan, can be a wise alternative to filing for bankruptcy. It can save people from dealing with the black mark of bankruptcy on their credit for a full ten years. Bankruptcy is not the best option for everyone, and getting a consolidation loan, if possible, is nearly always preferable.

Sometimes filing bankruptcy is the answer, sometimes it’s not. Bankruptcies can relieve a family of a lot of debt. Sometimes, however a bankruptcy cannot be filed, either because the individual or family in question has filed bankruptcy previously, or because the request to file is turned down by the court for another reason. 1 Bankruptcy & Loans Alternative found at this website offer helpful information concerning bankruptcy and consolidation as an alternative. They list some of the things that are not allowed to be discharged:

  • Alimony & child support
  • Back taxes and student loans
  • Recent purchases for substantial amounts
  • Property involving titles or liens

If your debt consists mostly, or even substantially, of any of these items, don’t file. Consider a bankruptcy loan for consolidation.

Remember, filing for bankruptcy has a big downside. A bankruptcy remains on your credit for up to ten years, while the worst credit error other than bankruptcy can only remain on your record for up to seven. Your credit record is the single most important factor in determining what credit you can obtain, and what the interest rate on that credit will be. If you file a bankruptcy, kiss any chances of purchasing a home or car in the near future good bye

“So if I can’t eliminate my debt,” you may be asking, “what can I do?” Reduce your monthly debt payments by up to 50% by consolidating your bills into one monthly payment with a lower interest rate, through a bankruptcy loan. If any of your debt is in the form of credit card bills, your rate is almost certainly over 10% and possibly over 20%. You’ll be surprised how quickly that pile of debt shrinks when the interest rate is significantly lowered. Get out of debt, and do so in a timely manner. Remember, the sooner you pay it off, that’s that much less time spent paying interest into your creditors’ pockets. You have better things to do with your money.

Here’s a little information on Chapter 7 bankruptcy and Chapter 13 bankruptcy provided by 1 Bankruptcy & Loans Alternative:

Chapter 7 bankruptcy:

  • As mentioned earlier, you can’t dismiss back taxes, student loans, alimony, or child support
  • Standards are going to be raised to meet those chapter 7 requirements
  • The bankruptcy will stay on your credit file for a long time (an average of 7 years)

Chapter 13 bankruptcy:

  •  Expect creditor meetings and going into a court room
  •  Your finances will be controlled by a Trustee
  • Those attorney’s fees, court fees, and filing fees will have to be paid up front

This credit stain will remain on your report for up to 10 years

Knowing all of this, do you still want to file for bankruptcy? Perhaps despite all of this, bankruptcy is still the option for you. If not, look into getting a bankruptcy loan for consolidation. Could it hurt? Bankruptcy could.

You might think that applying for a loan is a hassle, involving too much paperwork. Filing a bankruptcy requires much more paperwork, and the process is so complex that you’re usually advised to seek the aid of a lawyer. You may believe that your credit is already too bad to find a good loan. But creditors all over are lowering their standards, as more individuals slide into credit problems. And if you think your credit is bad now, imagine what it would be like after a bankruptcy. Hopefully you can get a bankruptcy loan and avoid the trouble that comes along with filing.

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Rob Harris is a lawyer by profession. But his hobby is writing that’s why he writes news, blogs and books side by side. He is known to not only write articles on law but also politics. He has a collection of poems and articles that he had written. So he provides news on Time Bulletin.