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Q: As a result of my divorce, I'm left with more debt than I can handle. Is there an alternative to bankruptcy?
By Susan Oriely
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One of the often-unintended consequences of divorce is the
burdensome debt that was formerly handled by two, now to be
handled by one. Creditors hold both spouses liable for debt
incurred during the marriage. Any agreement between the spouses
regarding who is responsible to pay the debt need not be
recognized by the creditor.
To avoid bankruptcy, one must become acquainted with bankruptcy
law. You must determine you income/expenses and your
assets/liabilities. If you have the ability to fund settlements
with the creditors, you should avoid bankruptcy.
Other than just paying you debts in full, one option to avoid
bankruptcy is to compare debt consolidation with debt
negotiation. Debt consolidation is a payment plan in favor of
your creditors to pay the debts in full over time with interest.
Debt negotiation, however, provides for discounted cash
settlements, which are customized to you ability to fund.
Most people are unaware of the possibility of negotiating with
creditors to reduce the amount of money they owe them. I
recommend that you seek out a professional - one who is not
emotionally involved - who has experience handling creditors to
give you a fair assessment of what the outcome of this strategy
might be for you. In addition, arrangements can be made to
minimize the negativity on your credit report.
About the author:
CuraDebt.com is a center for helping consumers nationwide become
debt free without filing bankruptcy. The agency provides a FREE
Debt Freedom plan consultation at 1-877-850-DEBT(3328) or on the
web site: http://www.curadebt.com/a/1242
Subscribe for FREE to the CuraDebt Money Tips newsletter and
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