So you may be wondering, why shouldn’t I just file for bankruptcy in Richmond?

Many people faced with financial hardship rush to bankruptcy as a method of resolving their debt problems, although their problems might have other better solutions.

We believe bankruptcy should ONLY be used as a LAST RESORT; pursued ONLY after all other debt relief remedies have been explored.

A bankruptcy filing is a very detrimental entry on your credit history, and can remain on your credit reports from 7 to 10 years after the bankruptcy filing has been discharged.

Here are some quesitons you should ask yourself before using a richmond bankruptcy attorney.

Can I continue to use my credit cards after I’m approved into the Debt Settlement program?

No. Continuing to use your unsecured credit cards after we begin the negotiation process may undermine our efforts and result in less than optimal outcomes for settlement. You can keep one card for emergency purposes but you should call each of your creditors and cancel your accounts. It’s important that YOU close your accounts and not your creditors because your credit file will reflect “Closed by Consumer” instead of “Closed by Creditor”. If you stop paying your creditors, it’s just a matter of time before your creditors close your accounts anyway.

What should I do when collectors call?

Upon acceptance into our program, we contact each of your creditors (in addition to any involved collection agencies and attorneys) putting them on notice that you’ve engaged our firm to help resolve your debts. We also advise them to direct all collection efforts to our firm,and to cease all communication with you. Most collectors would stop calling after we have contacted them.However, if you receive further calls, do not talk to them, instead you should refer them to our Client Services Department who will handle the situation and advise the creditor once again to cease communication with you. We will give you step-by-step instructions on what to do when collectors call you.

How does Debt Settlement compare to Debt Consolidation and Consumer Credit Counseling?

Under Debt Settlement we negotiate with your creditors to settle your debt for amounts significantly less than you owe; typically we can settle your debts for up to 70-75% less than your outstanding balances, saving you money on debt principal AND interest, and providing you the opportunity to pay-off your debt quicker. Debt Consolidation involves pursuing a NEW loan in an amount sufficient to pay-off all your existing debts. One of the challenges with Debt Consolidation is that it involves QUALIFYING for a NEW loan; generally it is difficult for individuals already in debt, or for those who have poor credit, to qualify for new loans.

Additionally, under Debt Consolidation you are still responsible for the entire amounts of all your existing debts. Consumer Credit Counseling Agencies claim to be non-profit agencies who, for an 8-15% fee paid by the lender, can sometimes lengthen the term of your debt and reduce some of your interest; however, your outstanding debt principal is not reduced. Additionally, this approach is typically a longer-term approach to debt resolution, taking 6-12 years compared to Debt Settlement, which can be completed in less than 3 years.

How will my credit rating be affected with the Debt Settlement Program?

Part of our negotiation process is to request that creditors reflect your accounts as having been paid or having been settled, with zero balances. Also, you must understand that your credit rating is a combination of two factors: Payment History and Debt-To-Income Ratio: the amount of debt compared to income. Whether you choose Debt Settlement, Consumer Credit Counseling, Debt Consolidation or Bankruptcy, the “Payment History” component of your credit file will be negatively affected. The good news is that as the Debt Settlement program reduces your debt significantly; your “debt-to-income Ratio” will improve quickly in a short period of time.

Additionally, attempting to resolve a debt through settlement is looked upon more favorably than filing bankruptcy. After completion of our Debt Settlement program, your debt-load should be minimal or at a level that you can live with. We also never report any information to any of the credit reporting agencies.

Always keep in mind that our program is the absolute quickest way to put your debts behind you so you can get on with your life and start rebuilding your credit. The sooner you can eliminate your debts, the sooner you can start rebuilding.

Learn how we can help you quickly eliminate significant amount of your debt without filing for bankruptcy. Life is short! Live healthy and stress-free life with little or no debt.