| When a consumer is in debt and does not see any | | | | change in rules, not everyone is even eligible for a |
| way out, they begin to access their options. Debt | | | | Chapter 7 and must go to a Chapter 11 which |
| consolidation is one of those options as is Chapter 7 | | | | dictates that you still have to pay back some of |
| bankruptcy. Both of these might resolve the issue | | | | your debt. This option is one you really must |
| but the impact on the consumer can be very | | | | understand before you consider it. There are legal |
| different. It is important to know what the pros and | | | | implications regarding what creditors can take from |
| con's of both are before making any type of | | | | you, whether or not you get to keep your home and |
| decision. | | | | other issues that make this a less than optimal |
| With debt consolidation, you have a chance to | | | | solution. You should only think about Chapter 7 if |
| combine all your bills into one payment, usually save a | | | | your case is dire, you have already sought out a |
| bit in interest and be on the way to rebuilding your | | | | debt consolidation solution and have been told that it |
| credit. As long as you find a reputable financial | | | | cannot be done for you. |
| consolidation specialist, you will find that the process | | | | Falling behind on debts is not fun. Credit card debt |
| for putting your loans all together is not difficult and | | | | can seem unforgiving, medical bills can be scary and |
| usually within the financial parameters that you can | | | | falling behind on that car payment might have you |
| handle. In some cases, these companies will negotiate | | | | looking over your shoulder for the tow truck, but it |
| with your creditors for a lower payoff just to help | | | | does not have to be this way. Debt consolidation can |
| you lower your overall payment. Many credit card | | | | be a solution if you use a company that specializes in |
| companies will do this if your counselor knows what | | | | these types of financial solutions. It can be extremely |
| they are doing and can present it in the best light. | | | | gratifying to resolve your issues and get that peace |
| Bankruptcy is a different story. Although Chapter 7 | | | | of mind you are looking for. Bankruptcy cannot do |
| will wipe the slate clean, it will also ruin your credit for | | | | this for you. Think hard and know the facts before |
| the next seven years of your life. And with the | | | | you do anything. |