Understand bankruptcy before you need it and you may be able to avoid it. You may also be more confident about getting through it if you need to.

Cost/Benefit analysis is thought of as a Business Procedure, but you are in the business of remaining solvent if possible. Your Family and Yourself could have no more critical business to attend to.

LET’S START AT HOME

What is your Day? What do you spend your time doing?

As the grip of debt grows tighter, time is what you have to spend; some days it may be all you have to spend. Roll with it. Panic doesn’t solve anything.
The basics of course are:

* Water

* Food

* Shelter.

We take water for granted, but that’s a different subject. Once your children (family) are fed and sheltered, in a sense everything after that is extra.

Believe it or not one of the next priorities is ‘entertainment’, not TV, Dancing, Big Screen type entertainment. I mean, what do you do with your time?

MONEY vs TIME

Most of our society is trained that entertainment means, ‘Where should we spend our Money’. The kind of entertainment I mean is ‘How should we spend our TIME?’ Those of you with small children realize that sometimes it doesn’t matter how much you spend, sometimes it just ain’t ‘entertaining’ to the audience.

Sit down with everyone in your Family that ‘spends’ money and discuss the daily expenditures. Write them down. I know we’ve all heard that before, ‘Write down where ever penny goes’. It really will open your eyes to corners you can cut. Prioritize these possible reductions.

Analyze your day, making decisions as to ‘necessity’, ‘entertainment value’ and ‘cost per hour of entertainment’. Things like ‘Should we give up the daily and weekend paper? That $12 a month could be spent better.’ But when considered as the hours you spend reading the paper, Sunday Comics, Editorials etc, is $12 a month expensive? You’ve done something you enjoy for Hours a week.

Is it worth Buying DVD’s? Again, I don’t know about you, but I don’t buy a DVD or CD unless it’s something I know I’ll watch or listen to many times. I consider a Classic Movie, especially with ‘Special Features’ to be a very enjoyable use of time, every time I watch it.

Is it worth paying for Cable TV or Satellite? A good internet connection is something I consider a basic necessity. I use DSL and get my phone bill from the same company. Depending on the area in which you live, the combination may be Cable + Internet, or Dish + whatever, you will make that determination as part of the Plan you are going to formulate before you finish this document. My Cable system uses a tier system and it is quite a financial jump to go to a higher tier to get 1 or 2 channels. On the other hand they also offer Hi-Speed Internet.

For the sake of educating our children I put quite a bit of ‘weight’ on access to a good internet connection. We can’t go to the Library 5 times a day. Admittedly there are many concerns with the internet as well as TV, but in my estimation more selective value can be garnered from the internet than is available on TV.

As far as the rest of the offerings from TV and the ‘Entertainment Media’ which lately includes the shows I remember that were known as ‘News’. Years ago they were labeled a ‘wasteland’, now wasted land maybe. If you look at our ‘Post Modern’ cycle of ‘Marketing that which they all need’, (Because we told them so), you may notice that ALL TV Programs are selling something, even without the 55 minutes per hour of commercials, the ‘show’ is selling something. Watch closely, if you dare to watch. The subtle persuasive techniques can have you spending in a flash, almost whether you want to or not.

SOME CHOICES

If your decision may include bankruptcy, more education is in order. Because people are usually not aware of the differences between chapter 13 and chapter 7, they are unsure of which bankruptcy chapter to file.

Investing is all fun and games until someone goes broke. One hard reality which ever investor has to come to terms with is that you are not always going to gain. In a matter of six months, with bad decisions, a stock portfolio can be completely destroyed. Leaving the investor with no cash flow and no way to pay bills. There are very little options for investors who have had some bad luck other than to file bankruptcy. Bankruptcy is a process in which an individual who is in debt can seek relief from that debt from the government. It can be a viable option to an investor debt relief but certainly should not be the first choice.

There is no clear way to know if you should file for bankruptcy or not. Discuss your with your financial advisor or seek the help of a credit counselor. Additionally, most bankruptcy attorneys offer a free advisory meeting to help you clarify issues and see if you are a good candidate for bankruptcy. Bankruptcy is a choice that you will have to live with for years. It will affect your ability to get a loan, lease a car, rent an apartment, and invest. Individuals who file bankruptcy are considered back risk for lending and investment companies. There are alternatives to filing bankruptcy. Below are a summary of those options. Choosing which option is for you is going to depend on your specific situation and how much in debt you actually are.

Hire a Financial Advisor – This may be hard for an investor to do but often giving up the control of your money can help you get a grasp on your life. A financial manager takes your money, pays your bills, gives you set allowance. This is done until your life, finances, and spending habits are in control. If feel you can help self control seek out a financial counselor that can help you set up a budget. Making a budget is the easy part, adhering to it can be extremely difficult. Make sure you select an experienced and moderately priced financial manager. Many managers offer services for large fees and have very little experience.

Working with Creditors – Calling up your creditors, explaining your situation, and hoping that they will be able to work with you is always an options. Some creditors are more than willing to help their clients through a time of financial crisis. Most creditors are aware that some debts are just hard to collect even if there has been a bankruptcy therefore it is in their best interest to work with you.

Refinance What You Can- If you own a home, and have some equity in the home, consider refinancing your home to pay off all of your high interest debt. Make sure you seek out refinancing options from a bank or respectable lending institution. There are many companies who will offer to combine all your debts into one low payment but these companies also charge huge fees for this service. In other words to not give up one group of debts for another (perhaps more damaging) debt.

If you are or have been bankrupt you can still get a loan. Some lenders and other finance professionals, or your neighbours, friends, family and well-meaning but misinformed people would have you think that the minute you file that bankruptcy youll never have a car or a home in your name again.

That is just not the case. There are firms that actually specialize in giving loans to the bankrupt and those with other bad credit issues.

It may be that those who are bankrupt will have to wait until the bankruptcy case is dismissed or the creditors are paid to get a loan for a vehicle or residential property, but thats not always the case. A lot depends on what type of bankruptcy you filed.

If when you are bankrupt you filed a Chapter 7 bankruptcy before you can get a loan you will have to wait two years. With a Chapter 13 bankruptcy the criteria, generally, for acceptance of a loan when having been bankrupt is that the creditors have been paid.

Since the type of bankruptcy determines how quickly and under what circumstances you can get a loan after you are bankrupt its important to know the various types of bankruptcy. Here are the basics.

Chapter 7 bankruptcy is filed as a protection of your personal belongings and lets you start on the road to financial recovery while paying your creditors back systematically. If you have a loan or two or three when you go bankrupt you can still pay them back, on a schedule that you can afford. You dont have to default.

To apply for a Chapter 7 bankruptcy youll need to gather your list of the people and firms to whom you owe money – your creditors. Youll need to present to the bankruptcy attorney a list of your assets and liabilities, and the property that will be – you hope – exempt from collection.

Youll need to prove your income and your expenses, and a statement of what you intend to do about the debts that are secured. Your property, including any that is part of a secured loan when you go bankrupt, will be turned over to a trustee.

You, or your attorney, meet with the creditors, your list of exempt items is discussed and you tell the others how you will pay them back. They have 30 days to disagree. The creditors then have 90 days to talk with the court about you and your bills.

The reasons that the criteria for getting a loan when youve been bankrupt differs between a Chapter 7 and Chapter 13 is that in a Chapter 13 you keep your vehicle, your home and your other possessions.

It is possible that a potential lender, when considering you for a loan, could look askance at this type of bankrupt situation. You, unlike a Chapter 7 bankruptcy, chose not to give up your property to pay off your debts.

If the post bankrupt loan youre seeking is for a home or vehicle it could be that the new potential lender will recall that in the last bankruptcy the lender who had your home as collateral didnt get it back when you failed to pay.

If you have hit the corner and have no options than filing bankruptcy under immense pressure of debts, then you might be overlooking what a debt consolidation company can offer you. Since declaring bankruptcy is to declare ones poor financial status, which is both embarrassing and makes the person less credible to banks and other lending organizations, it should be avoided at all costs. In such situations, people in debt crisis should think otherwise and look for better alternatives to filing bankruptcy.

This is where a debt consolidation company can be of help. These companies help people by providing different debt solutions that can prevent consumers from filing bankruptcy.

Different bankruptcy Alternatives

Before using a bankruptcy alternative, let us understand why you should opt for an alternative solution to debt crisis and not file bankruptcy. Here are some reasons why you should consider to consolidate your debts:

1.Creditors, most of the times are found to be willing to negotiate for a lower debt repayment, if they are convinced that your financial situation is really that bad. When the experts of a debt consolidation company negotiate with them, they are assured that they can at least recover partial amount. This way, the process of negotiation can help in reduction of amount due and save you from a possible bankruptcy.

2.Filing a bankruptcy could take a heavy toll on your time and money. Moreover, when you are declared a bankrupt, you are devoid of many financial opportunities and products. This is one of the biggest reasons why many people today seek alternatives of bankruptcy in form of online consolidation help.

3.It is better to consult a debt consolidation company to negotiate with the creditors for paying a partial and lower amount than to declare bankruptcy and lose right over your assets and properties at an auction, which could be very humiliating.

4.Besides helping you with consolidating debts helping you to get an affordable debt consolidation loan, company would also offer credit counseling services. They would suggest programs and tips on how to cut down on credits, manage necessary monthly expenses, to keep debt risks at bay and to plan a budget to achieve targeted financial goal within a reasonable time frame.

5.Since a debt consolidation company helps in consolidation of all unsecured debts into one debt account therefore, users find confidence to pay off their creditors and avoid their names from the being figured in the list of defaulters.

Services provided by debt consolidation companies include bill consolidation, bill management, and debt elimination. Many of these companies even offer free help, and get an appropriate loan. They shrink your monthly repayment liabilities by up to 40 to 60%.

Asking for the professional assistance by a debt consolidation company to reduce debt pressure is quite beneficial to reduce your debt, repair your credit and bring you back from the brink of bankruptcy.

Experienced bankruptcy lately? You may wonder if you will still will be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.

While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.

They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.

This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:

Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.

After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.

You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.

Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.

Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.

But it is not that easy so here are some factors to consider before committing yourself to a new house payment.

The Pre-payment penalty. This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don’t have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.

The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.

So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.

Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don’t max yourself out on credit, living right up to the edge of your income.

If your income suddenly drops, you’ll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.

Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.

Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.

Although it may be difficult to find a bank to give you a mortgage it’s certainly not impossible. Banks want to make money and you may find one that’s willing to take the risk.

Bankruptcy becomes a viable option for someone who is “upside down” in terms of cash flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative cash flow is within sight. The longer someone waits to explore the various options available, the more serious his or her situation may become.

One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to buy time and hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.

For many homeowners in the midst of this upside down cash flow, speaking to a qualified mortgage professional is a much better option. An experienced loan officer can objectively look at your finances and help you determine if restructuring your mortgage would not only help, but possibly even alleviate any need for bankruptcy.

If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. A qualified mortgage specialist can provide references for you as well, as he or she works with these professionals on a regular basis. Reliable references are essential in this case because experienced professionals greatly increase the odds of a successful bankruptcy experience. It’s that simple.

When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS.

Here are some additional steps you can take to make the bankruptcy process as painless as possible:

1.) Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date. It’s surprising how many people forget to do this.

2.) Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available which do an excellent job.

3.) Throughout the bankruptcy, do your best to not only live below your means, but to save as much cash as possible. You never know what you may need it for once the process is completed.

4.) Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit.

Tips for Rebuilding Credit:

1.) If you must buy a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get a loan for it. It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.

2.) Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Missed payments result in deductions from the account. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.)

3.) Meet with a credit repair specialist. Not only can they help you clean up the damage to your credit report, they can advise you on specific ways to rebuild the credit you lost as well.

While it does take time, there is definitely life (and credit) after bankruptcy. Some mortgage lenders will even lend to you within a year or so after a bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust.

Every day thousands of consumers are harassed by debt collectors and many of them have their rights violated by these collectors. The good news is that you can use those violations to have the debts eliminated and your credit repaired in the process. If you know the law, your credit repair process won’t have to rely on generic dispute letters or luck. Let the debt collectors do it for you and you can have your credit repaired, legally and permanently. Here is how…

Debt collectors are governed by the Fair Debt Collection Practices Act (FDCPA). One section of the Act clearly states consumers cannot be contacted at inappropriate places, like work. I can’t tell you how many collection agents violate this section of the law. There is a caveat however. They may contact your work unless they know your employer does not allow it. Simply write the debt collector notifying them that you cannot be contacted at work and make sure you send it Certified mail, return receipt requested. Should they contact you at work after that, they are in violation of the FDCPA and in a position where negotiation of the debt is usually a piece of cake.

Why these mistakes are common Most debt collector’s phone systems are set up on an automated dialing system. These systems handle thousands of client cases. When your name comes up, the computer automatically dials the numbers it has on file. When you put in a special request (like not calling your work) your file has to be pulled manually and dialed by hand. This rarely happens and therefore, violations commonly occur and leaving the door wide open for you to sue to have it removed.

Negotiate to delete the trade line for their violation. Once the debt collector has violated your rights, simply send a letter with a copy of the following.

* The copy of your original letter where you said you could not be contacted at work

* A copy of the Certified Mail receipt you received which is proof they were notified

* A new letter demanding a deletion of the trade line from your credit report. You may include that you intend to file complaints with the FTC, BBB, Attorney General and you can add that you intend to sue for damages as well.

You will find, once they are caught red handed, negotiations become very easy.

How To Remove A Bankruptcy From Your Credit Report

Credit report repair can be a long, tedious process and one of the hardest items to get removed is a bankruptcy.

In order to remove a bankruptcy, you must remove everything else from your credit report first, here is why…

If you have a bankruptcy and several accounts under it entitled “included in bankruptcy” the credit bureaus will simply assume it’s accurate since you have accounts that are covered under bankruptcy protection.

The First Steps: Go over your credit report very carefully. If you live at an address other then the address where you filed, have it removed. Debts are often tied to addresses.

Then, dispute and remove every account showing as “included in bankruptcy”. This shouldn’t be hard since creditors have very little incentive to verify the information. Why would they? They can’t get paid on it.

This process can take several months be patient, I promise it will pay off. Let’s look at how bankruptcy files are stored; it is the key to successfully removing it from your credit report.

How your bankruptcy is filed and stored. After two years, your file is moved from the local court at which you filed, to a central storage facility. If you go to your local court and request to see your file, they will have to order it and have it brought back to the court.

Have them order it. The time it takes to arrive is about a week. Once it arrives they will put it in a special place and notify you that it has arrived.

Let me back up for a moment. Once you order your BK file, wait about 3 days and then send a dispute to the credit bureaus. They will then call the “storage facility” where your bankruptcy file should be – and discover it won’t be.

It will be either in transition back to your local court, or already there and waiting for you to come view it.

Stall tactics are key. Once your file arrives back to the local court, they will start calling you to come view it. It is very important that you delay as long as possible. Remember, credit bureaus have 30 days to verify any disputed debts and it’s very important you keep your file in that “holding room” for as long as you can.

Tell them, you’re extremely busy at work, but will be there Monday. Call Monday and inform them you had an out of town meeting and promise to be there Friday. What you’re trying to accomplish is keeping that file on hold the entire 30 days while the credit bureaus tries to verify its existence.

Bankruptcy Credit Report information is essential before filing for Chapter 13 which should be your last resort. The essential action you do BEFORE filing for Bankruptcy is to get a Credit Report on your financial situation. From here there are many debt reduction strategies you can enact well before you hit the fatal Chapter 13 button, however if you do have to file for bankruptcy then be sure to know the best way to go about it.

Bankruptcy Credit Report – Get and Review your Credit Report.

The three main sources of obtain your Credit Report from are Experian (formally TRW), then Equifax, and Trans Union. They will provide information on your Credit including all loans, such as House and Car loans. They will also have information on your Credit Credit debts and any other smaller loans. If you don’t ask for you Credit Score you can obtain these Credit Reports for Free.

Debt Reduction Bankruptcy Credit Report

There are so many avenues you can pressure to find out ways around filing for Bankruptcy. Remember that If you file for Bankruptcy then your record will stay on public records for up to ten years, It will stay on Credit reports for around seven. One good point to note that is you can still access credit from financial institutions during this time period. Because your past debts have now been paid and you don’t owe any money on them, as long as you prove that you are generating a good income and have since built up a bit of a savings history especially in the last six months then yo might find yourself in a bit of luck.

The many ways you can try do reduce your debts include the following:

Try calling up each of your Creditors and ask for an offer for settling today. This method has been known to work and can reduce your loan repayment amount to 85% of the total – you could even go lower – like any negation process try and go for the lowest amount without being to outrageous, anywhere form 50% and upwards, your repayment history and likely hood of repayment should way in as factors. If you are about to go into Bankruptcy and they think that too then it’s better they get some money compared to nothing, so they could take you up on the offer.

Bankruptcy Credit Report – Facts

Did you know that Every 30 seconds in the United States someone files for bankruptcy.

Types of Bankruptcy

There are two types of Bankruptcy

Chapter 7 bankruptcy is when a court appoints a Trustee. This Trustee can liquidate or even sell valuables that you own to pay your creditors.

The Chapter 13 bankruptcy is when debt is consolidated into a single monthly payment. Which can go on for no longer longer than five years. You don’t have to repay all of your debt only as much as you can afford.

There are a lot of things people don’t know about bankruptcy. Misconceptions are abundant, especially with the new law changes that took affect in 2005. If you’re confused about what bankruptcy means – and doesn’t mean – then check out a few of the things listed below…

You must be flat broke to file for bankruptcy.
Wrong. The fact is, the only criteria to filing for bankruptcy are an inability to pay your debt as it comes due. Actually, waiting until your mortgage company is ready to foreclose to file for bankruptcy leaves you with fewer options to safeguard your financial future.

If you file for bankruptcy, you’ll never be able to get credit again.
Wrong. You can begin rebuilding your credit two years after fulfilling your debt requirements under your bankruptcy agreement. Although it will remain on your credit record for ten years, many people can begin to slowly rebuild their credit rating by paying their rent, mortgage and utilities on time; then applying for a low credit limit store credit card; and finally applying for bankruptcy loan when they are ready.

Once you’ve gone bankrupt, you can never own a home.
Wrong. Once you begin to rebuild your credit, creditors of all types – including mortgage lenders – will begin to consider lending you money. Your interest rates may be higher, but it is possible to obtain a loan. Sure, it’ll take awhile to prove to lenders that you can handle payments again, but it is possible to buy your own home following a bankruptcy.

Taxes cannot be discharged in bankruptcy.
Wrong. Some are such as personal income taxes that are more than three years old.

My student loans aren’t dischargeable under the new bankruptcy laws.
This one is generally true, but there are some exceptions. If the debtor can prove certain hardship, student loans may be dischargeable.

If I signed an agreement stating that a debt cannot be discharged in bankruptcy, it is my debt forever. Wrong. Although there are extremely limited exceptions, these bankruptcy clauses are unenforceable and are a tactic used to scare debtors into not filing bankruptcy.

I can lose my job if I file for bankruptcy. Wrong. It is illegal to fire someone for filing for bankruptcy. If, however, you apply for a new job after filing for bankruptcy, a potential employer can use the bankruptcy filing as a factor in deciding whether to hire you or not.

Now that you understand some of the misconceptions surrounding bankruptcy, you’ll be better prepared to make an informed decision as to what is best for you and your family.

As a result of filing bankruptcy, many consumers are required to attend credit counseling. The best method of pursuing this is to do it under Chapter 13 of the United States Bankruptcy Code. You are able to set the plan approved by the Court and then make your payments to the Federal Court Order that will stop the interest, late fees and collection calls. It is in your best interest to use the leverage of the Federal Court and avoid being taken advantage of by fraudulent credit counseling services.

You must be savvy in choosing the appropriate debt counseling service. Many companies will only wait until the bills go to collection and into default before they begin making the payments on your debt. This often destroys a consumers credit rating. You should also be savvy in choosing the appropriate debt consolidation loan.

Loans will consolidate all of your debt, but you must be sure that you will be able to repay the entire loan amount. You must understand the term and the interest rate on the loan. Some loans may require a balloon payment at the end of the loan. This is something that you should be aware of, as many lenders will entice you to take out another loan to pay the balloon payment.

Be wary of home equity loans if you are already having difficulty making ends meet. If you are unable to pay the home equity loan back, your home may be foreclosed upon to pay the debt. Due to the Texas Homestead Act, your home is safe from unsecured debts that are not exempted by the Homestead Act. Most states have an exemption that protects a certain amount of your home equity, but if you choose to pledge that amount to the loan then the Homestead exemption will no longer protect your home.

Be certain that you fully understand the program or service that you are participating in. Some services will negotiate with your creditors or make payments on the debt for you after you make a payment to them. You should understand whether the service promises to lower the amount that you owe or the interest rate that you pay. Others will promise to lower your monthly payments without changing your situation. They may also charge fees for handling your debt for you.

Some debt counselors will also only work with unsecured commercial creditors and will not help you with child support or unpaid taxes. They will actually ignore the debts that will not go away will send you money to those claims that could be discharged in bankruptcy.

There are several debt management services that are offered at a modest cost. It is often best to look for these non-profit services. For-profit or fee-based services should be approached cautiously and you will want to ensure that the service is worth what it costs.

By not choosing an appropriate service, you may find yourself in deeper debt and your credit rating may be very low at the end of the process.