Justifiably Eliminate Personal Debt

Can you legally eliminate bills?

Yes! if you know the system you can legally eliminate debt once and for all.

The founding fathers drafted debt elimination into the Constitution. When establishing the court system for the country, they required only a supreme court and a series of bankruptcy courts. In fact, Thomas Jefferson filed for bankruptcy twice.

Many modern people have filed bankruptcy as well. Walt Disney, Mark Twain and Lynn Redgrave have all filed bankruptcy.

Declaring bankruptcy is just one option for individuals with debt problems. Let’s first explore two less severe options.

One option is to consolidate your debt. When you justifiably eliminate your debt through consolidation, you roll all of your obligations into one loan. You should be able to arrange this loan at a lower interest rate than you had when your debts were freestanding.

Instead of many payments you make just one fixed bill.
If you have gone through a formal debt consolidation program, you will make the monthly payment to your consolidator who will turn around and make the payments to all of the individual lenders.

But sometimes you’re in so far over your head that you can’t make the minimums on your existing debt. Only lowering the interest rate won’t help. That is when you need to negotiate with your creditors for a reducing of the loan.

You can often pay only pennies on the dollar for obligations.

Why would lenders do this? Well, they’re afraid that if they don’t facilitate payment, you’ll choose the next option which is bankruptcy. You see, they’d rather get partial payment than none at all.

But sometimes bankruptcy is the premier option for you. Although it has negative costs, particularly on your credit report and credit score, a Chapter 7 bankruptcy completely wipes away all of your debt. It’s funny but, many people find their credit scores actually rise after bankruptcy because so much bad debt is wiped away.

Each year, about 1 percent of American families declare bankruptcy. But Dr. Michelle White of the University of Michigan believes that 17 percent of U.S. households would benefit from a bankruptcy filing.

You can justifiably wipe out financial obligations. You will be in a stronger position once you address your credit and financial problems head on.