How to Use the Threat of Filing Bankruptcy to Reduce Unsecured Debts
"Using a threat" sounds quite unethical and wrong practice right? But, the truth is completely a different thing.
Actually here threat is used for helping others regarding financial issues.
This term is often used for the people who have no option other than bankruptcy as they don't have enough money to repay their credit card loans.
It refers to the utilization of the loophole that the traditional banking system has.
In the recent years, the economic progresses of US have been stopped due to the recession in 2009.
People suffered from unemployment and economic problems have to consider this system for their own good.
If the punter has an unsecured debt of $10K or, more only then he can use this opportunity.
These unsecured debts are given by the creditors with a higher interest rate without any liabilities shown by the clients.
The customers were paying the bills in time when the economic status was normal.
After the recession period, losing the job they started to mismanage the repayment schedule resulted in a huge debts which was certainly not coverable by the clients.
Then they started filing bankruptcy finding no way out to manage their debts and bad credits.
The creditors found this really harmful for their business and financial credibility.
Government of the US also realized the situation and they declared their sponsorship for the debt repair companies.
These companies help the clients to repair their bad credits through negotiation with the creditors.
The major issue was here, if one customer files bankruptcy, his debt is repaired according to the law.
Though he has to carry a bad credit report for successive 20 years, still he is out of his debt.
But, the companies who credit him go into ultimate financial loss as they have no chance to recover the money back.
That's why they started to set the terms more relaxed and easy for the clients to prevent further filing cases.
They were ready to compromise the debt also.
They agreed to reduce the debt to 50% or, even more in some cases.
That's why a customer can easily use the threat of filing bankruptcy to reduce the debts.
Now, this procedure has become very popular among the people and they are using this to manage their bad credits.
This has saved millions of bucks of the creditors and the financers.
And also save the people from running into bad credits.
Actually here threat is used for helping others regarding financial issues.
This term is often used for the people who have no option other than bankruptcy as they don't have enough money to repay their credit card loans.
It refers to the utilization of the loophole that the traditional banking system has.
In the recent years, the economic progresses of US have been stopped due to the recession in 2009.
People suffered from unemployment and economic problems have to consider this system for their own good.
If the punter has an unsecured debt of $10K or, more only then he can use this opportunity.
These unsecured debts are given by the creditors with a higher interest rate without any liabilities shown by the clients.
The customers were paying the bills in time when the economic status was normal.
After the recession period, losing the job they started to mismanage the repayment schedule resulted in a huge debts which was certainly not coverable by the clients.
Then they started filing bankruptcy finding no way out to manage their debts and bad credits.
The creditors found this really harmful for their business and financial credibility.
Government of the US also realized the situation and they declared their sponsorship for the debt repair companies.
These companies help the clients to repair their bad credits through negotiation with the creditors.
The major issue was here, if one customer files bankruptcy, his debt is repaired according to the law.
Though he has to carry a bad credit report for successive 20 years, still he is out of his debt.
But, the companies who credit him go into ultimate financial loss as they have no chance to recover the money back.
That's why they started to set the terms more relaxed and easy for the clients to prevent further filing cases.
They were ready to compromise the debt also.
They agreed to reduce the debt to 50% or, even more in some cases.
That's why a customer can easily use the threat of filing bankruptcy to reduce the debts.
Now, this procedure has become very popular among the people and they are using this to manage their bad credits.
This has saved millions of bucks of the creditors and the financers.
And also save the people from running into bad credits.
