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 Bankruptcy is a complex
process and does not provide immediate relief; you
will be under constant stress and you will live with
it on your record for the rest of your life. Although
it will remain on your credit report for 7-10 years,
every loan application and most employment applications
ask “have you ever filed for bankruptcy?”
It
is against federal law- to answer the question untruthfully.
With the new Bankruptcy laws enacted in October 2005,
you may no longer qualify for a complete discharge
of your debts. Must likely you will only qualify for
Chapter 13 which is a restructuring and repayment plan
of 65-95% of what you owe over a 7 year time frame.
This means you are paying at least 10% more through
bankruptcy compared to the FH Financial Debt Settlement
Plan. More bankruptcy information: http://www.law.cornell.edu/wex/index.php/Bankruptcy Pros
This will provide
immediate relief from your harassing creditors. if
you make less than $15,000 annual income, you will
qualify
for a complete discharge of your debts.
Cons
•You
will probably lose your large assets such as cars,
home, investment accounts.
•You will payback more through bankruptcy compared
to a Debt Settlement Plan
•You will never be able to hide from bankruptcy because
it is a public record filing, bankruptcy will stay
with you to the grave.
•You will pay the legal costs associated with bankruptcy
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A Debt consolidation loan
may be a good answer to pay off your debts and reduce
your current monthly mortgage. You first must own a home
and have equity. You will refinance your home with a
new lender, a new interest rate, and a check to pay off
your debts. With this check, FH Financial will be able
to negotiate with your creditors for a reduced payoff
amount so you will have money left over.
The one problem
with a consolidation loan is that you are borrowing money
to payback borrowed money and this does not solve the
problem of getting out of debt. Although a debt consolidation
loan is not for everyone, it may be right for you; speak
with a Debt Specialist.
Pros
•You will pay off your debts through the equity of your
home
•Only 1 monthly payment
•Tax benefits and savings
Cons
•Does not get you out of debt
•Credit accounts remain open giving you the ability to
incur more debt
•Loose ownership/value in home
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This is a program that allows
you to keep your credit accounts active but you will
no longer be able to use the cards. It will maintain
your credit score or improve your score if your accounts
are past due by a couple of months. A DMP will pay off
the entire balance plus interest, on average you will
payback 140% of the amount you currently owe. Ex. If
you owe $20,000 on credit cards, you will payback about
$8,000 in fees and interest for a total of $28,000
Pros
•You maintain a good credit score
•You will not face collections calls
•1 monthly payment to the Debt management company but typically
your payment is the same as your current payments combined
or even higher
Cons
•Most people do not get out of debt with this program
•You will payback the full amount that you owe plus interest
•No guarantee that you will be out of debt in the time
frame of the plan
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Do Nothing to Eliminate Your Debt or Continue to Pay the Minimum Payments |
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The definition of INSANITY
is doing the same thing over and over but expecting
different results. Let us help you find a way that will rid
you of your debts and make your life easier.
Are you continuing to pay the minimum payments each month but find your self
further behind because the interest rates are killing you? Trying to hide from
your debt will only make it worse! Unless you see winning the lottery in the
next two months, you are not going to get out of debt on your own.
Step 1
Consult with a Debt Specialist at FH Financial to find out which programs you
qualify for and the specifics as they pertain to your situation.
Step 2
The Debt Specialist will put together a plan for you to review and approve.
Step 3
The Debt Specialist will discuss with you different payment options and find
the one that is best for you.
Step 4
The plan is put into effect and you immediately feel the benefits of the plan
and you are on your path to becoming debt free.
Call us now at 1-866-430-3437 for a free consultation
from a Financial Advisor.
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