fresh start debt relief
Any individual who has received a Chapter 7 federal bankruptcy discharge, or who is a current debtor in a Chapter 7 case, can qualify for relief under the fresh start debt relief program. Fresh Start payment programs offer eligible former debtors the chance to repay only a fraction of the total amounts owed for late fees, collection costs, court fees, and fees for attorney representation over the previous three years. In order to qualify for a fresh start payment plan, an individual must have filed all previous bankruptcy cases within the past three years. An individual does not need to have filed all previous cases to qualify. Also, the individual does not need to have a discharge to begin the fresh start program. If you find that you meet these requirements, it is important to begin looking at your various options as soon as possible. Some eligible bankruptcy debtors will be offered the chance to begin paying back the money they owe by way of a fixed payment plan. If you do not have a structured settlement or annuity plan through which to begin paying, you may want to look into options such as instant repayment. If you have camera tickets, traffic fines, other financial obligations, and other types of debts that are easy to collect, you may find that this payment option will work well for you.
fresh start debt relief options
If you do not have a structured settlement or annuity plan through which to pay, instant repayment may not work for you. In this instance, you will want to look into the possibility of establishing a pay-to-play program between you and the company or party you owe money to. Generally, the agreement includes a structured amount that is paid to the debtor each month. Once the total amount owed becomes higher than the debtor’s current income, the lender will require that the full amount be paid in full within a certain period of time, typically one month to six months, depending upon the type of payment plan you choose.
Another way that you can get hold of your outstanding balances, without having to go through a fresh start, is through an offer in compromise. If you have several impounded cars and other assets that are part of a secured debt consolidation loan, your lender may allow you to refinance your existing loans in order to obtain release of your remaining debt. Although this solution requires that you obtain the release of another asset or assets, this can often be done without penalty or without suffering any loss of equity on your current home or automobile. Once the entire amount of your secured debts has been repaid, you will once again become eligible to apply for home ownership, automobile financing, credit cards, etc. Once you have completed paying off your secured debts, if you are in good standing with your lender, you may be able to obtain approval for a home equity line of credit.
A third option available for eligible bankruptcy debtors, who do not wish to obtain release of another asset in order to obtain relief from their credit card debts, is to settle for a payment plan. With this option, you will pay a small monthly fee in return for a set amount of time to repay your debts. During this time, you may be able to decrease your payments even further if your financial circumstances change dramatically. To ensure that you get this lowest monthly payment possible, you may want to consult with a professional before you submit your application. It should be noted that many creditors will not allow a chapter 13 debtor to settle their account until they have fulfilled their obligations in full. However, with a payment plan, you can work with your creditors to come up with a realistic payment plan that you can afford. Once you have satisfactorily completed the required payments, you will not be considered a chapter 13 debtor again. As long as you follow the terms of your payment plan, you will be able to successfully complete your debt relief through settlement. This will allow you to continue to live your life free of excessive credit card debt.