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This is my work and someone has wrote a response to it. Can you help me address his response. I need to defend my position (my post). Can anyone please help me?

My work:

Let’s say that a good friend of mine, Linda, has had serious financial misfortunes lately and is unable to meet her debt payments. What advice can I give her? Assuming that Linda’s credit is more than what her income can support, she will have to get a hold of her creditor and clearly explain her financial situation. It is important to do that in such manner in order for both Linda and her creditor to agree on a modified payment plan that she can afford, if feasible (Winger & Frasca, 2006). Before taking this approach, however, it would be a good idea for her to create a monthly income and expense plan for the current year. In doing so, she will be able to determine precisely when her financial problems started to take effect. She can also take steps to positively improve her financial status by making several adjustments, like reducing some expenditure. Audrey Edwards (1997) stated, “Even the worst credit blemishes can be corrected--and you can do it yourself rather than paying credit-repair companies to do it.” Then again, in a case where she cannot resolve her own financial problems, she will have to bring her monthly income and expense plan to her creditor. This will then give her creditor a better picture of her current situation.

Seeking credit counseling is another approach to keep in mind if her personal debt problems were not resolved between her and her creditor. To do so, Linda must get a hold of the Better Business Bureau or the chamber of commerce where she reside and ask about credit counseling assistance. Kimberly Lankford (2006) says, “The government thinks so highly of it that the law now requires you to get credit counseling within six months of filing for bankruptcy.” Credit counseling services sponsored by the National Foundation of Consumer Counseling can provide assistance in two ways. Credit counselors work with the borrower in developing a strategic plan to repay debts. And, a more reasonable plan can be made with the lenders if the income is insufficient (Winger & Frasca, 2006).

In a worse case scenario (where everything else has failed), Linda will have to file either a Chapter seven bankruptcy, also know as straight bankruptcy, or Chapter 13 bankruptcy, also know as wage earner plan. Unfortunately, both have its benefits and drawbacks. If she plans to file a Chapter seven bankruptcy, she will be able to start off without her current debt since it will be discharged. On the other hand, this type of action will be in her credit report for ten years. During those ten years, she may find it difficult to get credit affecting her in several ways, for example, employment prospects and rental agreements. Unlike a Chapter seven bankruptcy, a Chapter 13 bankruptcy will show that she has made a sincere attempt to repay the debt she owes. Moreover, she will have over a three-to-five year period to repay her obligations as set by a court. But, if she wishes to file a Chapter 13 bankruptcy, she must be aware that it will show up on her credit report for seven years (Winger & Frasca, 2006). If I may say, Linda should avoid filing up for bankruptcy for the most part. Given that, Chapter seven and 13 bankruptcy should not be given first consideration over the other options I had mentioned earlier. Besides, credit counseling is mandatory for anyone considering bankruptcy (Gandel, 2005).

Classmate's response:

Very good post. You had a very good list of options saving the worst case scenario for last. I imagine that it would be important to exhaust every option before filing bankruptcy something I did not include in my post. The only area I disagree with i s the quote stating that any credit blemish can be corrected the only thing that I believe that can correct that is time as creditors have mandatory time limits as to how long something stays on your credit report.

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