Fresh Start Debt Relief

Fresh Start Debt Relief

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.

The Fresh Start Debt Relief Program offers financial relief to those who are buried in debt also for those who obtain Chapter 7 federal bankruptcy discharges.

FREE Consultation 

For Credit Card Debt Relief Call : 888-544-1628

If you are a debtor in a Chapter 7 federal bankruptcy case and have received a Chapter 7 discharge (otherwise referred to as discharged), you might qualify for financial relief through the Fresh Start Program. To be more specific, the program targets borrowers who have been discharged from bankruptcy due to circumstances beyond their control. In other words, if you were out of work and unable to return to work because of a disability or illness, or if your business was brought to a close and you lost your job as a result of lay-offs, you might qualify for relief from debt under the Fresh Start plan. The eligibility requirements are that you must have become totally financially unindicted of any wrongdoing, and that you have met the other eligibility requirements.

How Does The Fresh Start Debt Relief Program Help

As previously mentioned, the goal of the Fresh Start Program is to assist with debt reduction and improve overall financial situation for the debtor. Under the terms of the program, once the recipient has qualified for chapter seven bankruptcy protection and has been discharged from this filing, he or she will be assigned an individual or group of individuals to act as primary and secondary paying agents. They will meet regularly with the debtor and develop a payment plan that will allow the debtor to pay off debt in small amounts, over a reasonable period of time. To make a successful payment plan, the creditor must agree to a payoff amount that is less than what would otherwise be required under the debtor’s loan agreement. If the creditor objects to the proposed payment plan, he or she must provide a letter detailing why such objections are being raised.

It is important to note that the primary and secondary paying agents are not creditors, and they do not represent the debtor. Rather, they are experts at negotiating with creditors for reduced interest rates, elimination of late fees, and other reductions in debt. They will coordinate all of the debtor’s needs, including finding eligible bankruptcy debtors, and work with them to establish a repayment plan that meets both their goal of lowering the debtor’s monthly payment obligations and their ability to pay such payments. Once they have negotiated a settlement, the creditors will agree to erase or reduce late fees and penalties on a monthly basis.

While the primary and secondary paying agents help the debtor with his or her payment plan, they will also do their part to protect the debtor’s credit rating. They will inform the court that the debtor has reached his or her limit on available chapter seven discharge funds, and request permission to suspend any collections that continue to accrue after the limit has been reached. The suspended collections will be removed from the debtor’s credit report, but will remain available for collections by other lenders. (The Camera Tickets provision will only apply to future chapter seven discharge proceedings.)

If no chapter seven funds are available, the fresh start payment plan will provide for a six-month period during which time the debtor will not have to make any payments. During this six-month period, the creditor will not look at any past due accounts. After the six-month period, the creditor will begin assessing all current and future potential debts. This is when the debtor’s credit report will show all current and future collection activity. If the debtor’s account contains more collection than is healthy, the collection activity will be reported to the credit bureau, which will make it possible for the agency to negotiate with the creditor and obtain the removal of the embarrassing collection items.

Some potential chapter seven discharge beneficiaries will receive a notice that informs them that the debtor has reached his or her limit on chapter seven payment plans. The debtor will then have up to six months in which to repay the balance. If the borrower fails to make payments during this six-month period, the creditor will then look-back period and apply the chapter seven discharge to the account. A debtor who buys a new vehicle with a financed price over one-fourth of the gross monthly income could be a chapter seven recipient based upon the value of the new car. A creditor will look-back period will also apply if the debtor receives any motor vehicle insurance premium payments.

For Credit Card Debt Relief Call : 888-544-1628

Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Leave a Comment

Your email address will not be published. Required fields are marked *

Call Now ButtonFree Debt Consultation