Providers Offering the CareOne Service Give a Real Alternative to Bankruptcy
When your unsecured credit card debt gets so overwhelming that you cannot make the payments on time and creditors are calling you constantly, the false promises of bankruptcy appear all too attractive. Don’t fall for those promises. Providers offering the CareOne credit service give you a real answer allowing you to do the right thing by paying the majority of your debt back and at terms that you can live with. What are some of the features of using a debt management program through providers offering the CareOne credit service to avoid bankruptcy?
You are more than likely not going to qualify for a Chapter 7 bankruptcy. The Bankruptcy Reform Act of 2005 made it much harder for a debtor to file for this type of debt relief under what is known as Chapter 7. One basically has to live below the median income level for his or her state and have no potential for future disposable income to pay the debts. The Bankruptcy Reform Act of 2005 basically was intended to keep so many from running up debts and just walking away from them.
When you don’t qualify for a Chapter 7, you will have to file under Chapter 13 bankruptcy. Chapter 13 bankruptcy is a wage earner debt repayment plan. And the CareOne Credit Counseling Services Debt Management plan is a repayment plan as well. Except, you don’t have creditor meetings, you are not under scrutiny by the legal system, and the creditor/debtor relationship is not adversarial in nature (no “you against them” mentality).
So if you are going to pay creditors back, why go through the trouble of bankruptcy? You can think of it in terms of one stop or many stops. More than likely, you will not qualify for a Chapter 7 bankruptcy and Chapter 13 (wage earner plan) will be your only choice. The Chapter 13 program has the goal of allocating your income to pay creditors over the next 3 to 5 years. The CareOne Credit Counseling Services Debt Management program has a commitment that also lasts from 3 to 5 years except that you don’t have to hire a lawyer, pay filing fees, or go to numerous meetings with the court-appointed trustee and your legal counsel. You really only have to deal with CareOne service providers and you get the collections calls to stop too.
You can realize success and your credit report will not be devastated. A bankruptcy remains on your credit report for 10 years. During that time, you will not only have problems getting credit but you may have problems renting an apartment or even finding a new job as more employers are checking credit reports these days. Yes, your involvement in a debt management program does show on your credit report but think about it from another person’s perspective. Would you rather they see you filed for bankruptcy or that you worked with paying back your creditors through something like a CareOne Credit Counseling Services debt management program?
The choice is yours and debt management is not an easy journey but the end result is much more attractive and gives a greater sense of accomplishment. To visit the CareOne Credit Counseling Service’s official website click here.