Consolidating debt without bankruptcy
In that case, depending on your circumstances, you may be allowed to discharge the loan.
When an individual owes debt to a lot of different lenders or accounts it is difficult to keep on top of the monthly payments.
Debt consolidation is a way to consolidate debt into one consolidation loan.
Debt starts to increase again and those debt obligations are on top of maintaining the loan.
This can lead to a financial crisis where your situation is worse than it was when you sought the consolidation loan.
Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. Your financial situation doesn’t have to go from bad to worse.
If you or someone you know is in financial hot water, consider these options: self-help using realistic budgeting and other techniques; debt relief services, like credit counseling or debt settlement from a reputable organization; debt consolidation; or bankruptcy. It depends on your level of debt, your level of discipline, and your prospects for the future.
Unsecured Debt If you used your debt consolidation loan to pay off credit card debt, that loan will be treated as an unsecured debt, which means you may be able to discharge it in bankruptcy.
Student Loans If your debt consolidation loan was used to pay off student loans (including private loans) you may not be allowed to discharge that debt in bankruptcy.
Are you worried about losing your home or your car? Many people face a financial crisis at some point in their lives.
Are your accounts being turned over to debt collectors?
However, sometimes you are unable to pay off a debt consolidation loan no matter how hard you try, and, because of this, you’re forced to file bankruptcy.Tags: Adult Dating, affair dating, sex dating