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Credit card debt consolidation
By: CCN.com
Some people carry debt on their credit cards due to inability to
make payment owing to some emergency expenditure, others carry
debt due to excessive or irresponsible expenditure on their
credit cards (forgetting that they need...
Learn The 15 Sure-Fire Debt Elimination Tips You Must Know!
Debt Elimination tips shows how Millions of Americans are living on the edge of financial disaster surviving only on the hope of next week's paycheck. The average American is dying under a load of debt, with little or nothing building in the bank...
Reduce Your Debt - How To Use Debt Consolidation To Get Yourself Out Of Debt Permanently
Debt consolidation can get you out of debt permanently if you
make it part of a financial plan. Within five years, you can
have your unsecured loans paid off and on your way to debt-free
living. The key is to plan for the future.
Get Your...
Student loan debt cannot be wiped out through a bankruptcy filing
Recent legislation passed by Congress has brought about the
most sweeping changes in U.S. bankruptcy law in twenty five
years. The Bankruptcy Abuse Prevention and Consumer Protection
Act of 2005 will eliminate the opportunity for most Americans
with debt problems to file for bankruptcy under the rather
forgiving Chapter 7 of the bankruptcy code. A Chapter 7 filing
allows the court to wipe out most personal debt, allowing the
debtor to begin over again and make a fresh start.
Proponents of the bill, including the major credit card
companies, claim that this is costing them millions of dollars
per year. The new law will require most filers to file under
Chapter 13 instead, which requires a five year, court-ordered
repayment plan. The credit card companies say that this will
save them money, and that savings can be passed on to customers.
Some filers will still be able to file under Chapter 7, provided
that they pass a "means test" which determines their eligibility
in terms of annual income.
Most will have to file under the more stringent Chapter 13. One
thing will remain the same no matter how the debtor files for
bankruptcy - student loans are exempt from being eliminated in
court.
Bankruptcy is not a free ride; it does come with some strings
attached. The filing will remain on the debtors credit report
for ten years, and may affect future attempts to obtain loans,
housing or a job. Furthermore, the debtor may not file for
bankruptcy again for another six years, so any debts incurred
after the filing must be paid in
full.
Several years ago, Congress enacted legislation that exempted
student loans from elimination through bankruptcy. This applies
not only to Federally issued student loans, but also to
privately funded, for-profit loans. What this means is that
anyone with a student loan, even if it amounts to more than
$100,000, must repay it, even after filing for bankruptcy. Other
personal debts may be wiped out, but the student loans will not
go away.
For those with large student loan obligations, it may be worth
their while to seek consolidation through their lender. If that
is not an option, the borrower should see if it is possible to
negotiate a more favorable repayment plan. It may also be
possible to consolidate the payments through another loan, such
as a home equity loan or home equity line of credit (HELOC)
Should any of these options not be workable, then those with
student loans should be aware that their lenders and the lenders
debt collectors will be remaining in touch for a number of years
to come. Money spent on education is certainly money well spent,
and Congress has made it clear that if you borrow money to pay
for education, you will have to repay it.
Copyright 2004 1DebtFreedom.com
About the author:
Talbert Williams offers debt consolidation, debt reduction,
credit card debt referrals and advice. For more information,
articles, news, tools and valuable resources on debt solutions,
visit this site: http://www.1debtfreedom.com/conversion
Written By: Talbert Williams