Incomplete Debt Settlement Programs - Are Debt Relief Companies to Blame? Certainly Not
Critics of debt settlement make a big fuss about the fact that very few persons who start the settlement program complete it successfully.
Well, not more than thirty percent of those who file for Chapter 13 bankruptcy, which is nothing but state controlled debt rescheduling and management program, complete the plan and receive a discharge.
Does this mean that the court is to blame for the low success ratio of Chapter 13 bankruptcies? Not many people successfully complete Chapter 13 or debt settlement because they are not use to the idea of financial discipline.
If people were disciplined about financial matters, they would not be facing the problem of settlement.
Of course, there are some persons who end up facing bankruptcy without any fault of theirs.
A certain financial emergency combined with bad luck is sufficient to push the person into bankruptcy.
However, most of the individuals who seek a settlement or bankruptcy are those who have created the problems on their own.
The settlement company can do its best by getting a fifty to sixty percent waiver.
Whether this will work or not will depend on the skill and discipline of the individual to save the money.
If the remaining thirty to fifty percent amount is not saved and deposited in the account on time, chances are high that the lender will simply refuse to proceed.
Further, it is also pertinent to note that the undisciplined approach of the individual is also going to cause financial loss to the settlement company.
This is also one of the reasons why the company charges its fees up front.
If the individual can satisfy the company that he or she is not going to leave the program in between, then chances of company being flexible in the payment of fees will be higher.
Hence, take all these statistics and information about the low success ratio of settlement programs with a pinch of salt.
In nine cases out of ten, individuals dealing with a genuine settlement company do not stick with it long enough to enjoy its benefits.
In other cases, dealing with a fraudulent company makes it irrelevant whether the individual is disciplined or not.
You can take care of this problem by making use of debt settlement networks and other online resources.
These resources help you find the right settlement company and all the information you need about the settlement company at zero cost.
You can find out how tough the program is before you sign on the dotted line.
Well, not more than thirty percent of those who file for Chapter 13 bankruptcy, which is nothing but state controlled debt rescheduling and management program, complete the plan and receive a discharge.
Does this mean that the court is to blame for the low success ratio of Chapter 13 bankruptcies? Not many people successfully complete Chapter 13 or debt settlement because they are not use to the idea of financial discipline.
If people were disciplined about financial matters, they would not be facing the problem of settlement.
Of course, there are some persons who end up facing bankruptcy without any fault of theirs.
A certain financial emergency combined with bad luck is sufficient to push the person into bankruptcy.
However, most of the individuals who seek a settlement or bankruptcy are those who have created the problems on their own.
The settlement company can do its best by getting a fifty to sixty percent waiver.
Whether this will work or not will depend on the skill and discipline of the individual to save the money.
If the remaining thirty to fifty percent amount is not saved and deposited in the account on time, chances are high that the lender will simply refuse to proceed.
Further, it is also pertinent to note that the undisciplined approach of the individual is also going to cause financial loss to the settlement company.
This is also one of the reasons why the company charges its fees up front.
If the individual can satisfy the company that he or she is not going to leave the program in between, then chances of company being flexible in the payment of fees will be higher.
Hence, take all these statistics and information about the low success ratio of settlement programs with a pinch of salt.
In nine cases out of ten, individuals dealing with a genuine settlement company do not stick with it long enough to enjoy its benefits.
In other cases, dealing with a fraudulent company makes it irrelevant whether the individual is disciplined or not.
You can take care of this problem by making use of debt settlement networks and other online resources.
These resources help you find the right settlement company and all the information you need about the settlement company at zero cost.
You can find out how tough the program is before you sign on the dotted line.
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