If a good friend of yours has had serious financial misfortunes lately and is unable to meet her debt payments, what advice can you give? Be sure to include the topic of bankruptcy because she has heard that it eliminates all your credit problems. In your discussion, distinguish between straight bankruptcy and a wage earner plan.
Here are three consumer credit counseling websites I found via Google:
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Consumer Credit Counseling Services (CCCS)Consumer Credit Counseling Services (CCCS) helps people nationwide solve debt problems by providing counseling on personal finances, by phone, Internet, ...
http://www.cccsintl.org/ - 11k - Cached - Similar pages
Consumer Credit Counseling and Debt ConsolidationNational non-profit credit counseling agency offers financial education and debt consolidation.
http://www.consumercredit.com/ - 22k - Cached - Similar pages
Consolidated Credit Counseling Services, Inc: Non-profit debt ...Consolidated Credit Counseling Services (CCCS) offers an online debt consolidation solution that doesn’t require you to qualify for a loan.
http://www.consolidatedcredit.org/ - 43k - Cached - Similar pages
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Here is information on bankruptcy:
American Bankruptcy InstituteNews, statistics, legislative updates, directories of professionals, and information on filing for...
http://www.abiworld.org/ - 49k - Jun 10, 2006 - Cached - Similar pages
Bankruptcy - WexAn overview of bankruptcy law with links to key primary and secondary sources.
http://www.law.cornell.edu/topics/bankruptcy.html - 24k - Cached - Similar pages
Use what you need, and write up your assignment. If you want someone to go over what you write, please re-post.
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If a good friend of yours is experiencing serious financial misfortunes and is unable to meet her debt payments, there are several options and pieces of advice you can offer.
1. Encourage your friend to seek professional help: Suggest that your friend reaches out to a reputable consumer credit counseling agency. These agencies can provide guidance on personal finances, offer debt consolidation services, and assist with developing a customized payment plan.
Some reputable consumer credit counseling websites include:
- Consumer Credit Counseling Services (CCCS) at http://www.cccsintl.org/
- Consumer Credit Counseling and Debt Consolidation at http://www.consumercredit.com/
- Consolidated Credit Counseling Services, Inc at http://www.consolidatedcredit.org/
These organizations can provide valuable resources and work with your friend to develop a plan that fits her unique financial situation.
2. Explain the concept of bankruptcy: It is important to discuss bankruptcy as your friend has heard that it eliminates all credit problems. However, it's crucial to distinguish between two types of bankruptcy: straight bankruptcy (Chapter 7) and a wage earner plan (Chapter 13).
- Straight bankruptcy (Chapter 7): This type of bankruptcy involves the liquidation of assets to pay off debts. It is typically for individuals with very limited income and few assets. In a Chapter 7 bankruptcy, certain debts may be discharged, meaning they are no longer legally owed. However, not all debts can be discharged, such as student loans or recent tax debts.
- Wage earner plan (Chapter 13): This type of bankruptcy allows individuals with a regular income to develop a repayment plan to pay off debts over a period of time, usually three to five years. Chapter 13 bankruptcy may allow your friend to keep assets such as a house or car while still addressing her debt woes.
3. Advise caution and consultation: Emphasize that bankruptcy should be considered as a last resort and should not be taken lightly. It is a legally complex process that can have long-term consequences on credit and financial standing. Encourage your friend to consult with a bankruptcy attorney to understand the specific implications and requirements in her jurisdiction. The American Bankruptcy Institute website (http://www.abiworld.org/) can provide news, statistics, legislative updates, and directories of professionals to assist in the process.
Remind your friend that the best course of action depends on her specific financial circumstances, obligations, and goals. Encourage her to seek professional advice to make an informed decision and explore all available options before considering bankruptcy.