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Business Debt Settlement

February 3, 2023 By Leave a Comment

Running a business is often a daunting task. However, the hopes of entrepreneurs are often so high. The fact is that several businesses are struggling. In addition, almost 50% of small businesses fail in their first 5 years. You have to turn to high-interest debt even if you are still around. If you have gotten to the point where you need to borrow more than you can repay, your creditors may start visiting after you. 

You may even require thinking about business debt settlement to eliminate worse consequences. Moreover, if you are behind on your payments for long enough, the creditor sells your debt to a collection agency. You may face many issues if your company goes out of business and you need help paying your debts. If you are facing any of these situations, here’s what you need to do. 

What is Business Debt Settlement?

When businesses face a situation where they accumulate lots of debt and bankruptcy is not the road they want to travel, it is better to choose the business debt settlement option. It is usually an agreement with creditors to pay the debts, mostly at a very low price compared to the original debt. Undeniably, it is the best alternative to bankruptcy which can involve plenty of stress, time, and the most irritating added expense to an already financially compromised business. 

When a business owner uses debt settlement, it takes the pressure off from creditors, so you can get back to work at what you do best. In simple words, the process of negotiating to pay less amount of money than what you owe is called business debt settlement. When you get a collection agency to agree to settle, you need to pay a fraction of the original debt amount, and the agency forgives the rest of the amount.

How does Business Debt Settlement Work?

The process of business debt settlement is very simple. You need to enlist the help of a debt settlement company or hire a business debt settlement attorney. They will tell the collection agency on your behalf that you want to pursue a settlement. They will also request that the collection agency will now never contact you directly. If you have some money you can use for negotiation, the settlement company or the lawyer can immediately start the process. 

In case you are out of money, you will usually pay into an account with the firm every month until you have enough for them to negotiate on your behalf. When the agency agrees to the business debt settlement, they give you a written agreement that your debt is satisfied, and they forgive your remaining amount.

Benefits of Business Debt Settlement:

There are several benefits you get when you consider business debt settlement. It can help your business avoid bankruptcy. Previously, businesses ridden in debt used bankruptcy as a defense shield against creditors and lawsuits. After the U.S. Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, things changed. After that, people filing for bankruptcy need to do extra paperwork that requires double effort and time.

On the other hand, business debt settlement can give your relief from the hassles of bankruptcy. Remember that business debt settlement efficiently works with business owners. So, business owners, without any distractions, complete their daily tasks.

 Conclusion:

Those businesses looking for a business debt settlement instead of bankruptcy can find the solution with a business debt relief program. The other debt settlement services for business services offered include business debt help, business debt consolidation, and business debt reduction. 

Filed Under: Debt, Money

How Can You Extend Student Loan Refinance Terms?

December 14, 2022 By Leave a Comment

Refinancing your student loans can be a fantastic way to save some money and pay off your debt more quickly. But what if you opt for a shorter term when you refinance? Can you extend these terms in the future? It’s possible, but there are caveats that make it more complicated than simply calling up your lender and asking for longer repayment windows.

What are student loan refinance terms?

  • Refinance terms are the length of time you will take to pay back your loan.
  • Most student loans have a 10-year term, but longer-term options exist. “You’ll need to perform continuous refinances to reach up to a goal of a 30-year student loan refinance,” as Lantern by SoFi professionals says.
  • The longer the term, the lower your interest rate is likely to be because it takes more time to pay off a loan with a lower monthly payment amount and less interest paid over time.

 

Why should you extend your student loan refinance terms?

There are a few reasons why you should extend student loan refinancing terms.

  • You’ll lower your monthly payments and pay less interest over time. By extending the term of your loan, you’ll be able to pay off the principal faster than you would with a shorter term.
  • You can get rid of your private student loans by consolidating them into one federal or government loan with fixed interest rates instead of variable ones that are tied to market conditions and not controlled by any organization. This will also help reduce monthly payments because there’s no need for multiple lenders with varying reputations and practices when they’re all under one umbrella like Sallie Mae or Nelnet (for example).
  • If you have some high-interest debt still on top of your student loans–like credit cards–refinancing them into low-interest loans could help clear things up so that all those payments go toward getting rid of those debts instead!

How can you extend your student loan refinance terms?

If the prospect of paying off your loans in a shorter period of time is daunting, or if you simply want to spread out your payments over a longer period, you might be able to get an extension. Depending on the lender, this may come with some strings attached: For example, a rate increase or higher fees. So before overextending your term (and thus risking default), consider first whether this is what’s best for your financial situation and how it will affect repayment options down the road.

Refinancing without extending your term

  • If you’ve already refinanced but would like to lower your monthly payments or pay off your student loan faster, consider using a lender that allows you to refinance without extending your term.
  • This means that the total amount of interest you’ll pay is equal to or less than what you’d pay if you extended the term.

Not all student loans are created equal, and the right one might be a good option for you. If you want to extend your current refinance terms, take some time to research different lenders and their rates.

Filed Under: Debt

Celebrities that got into real debt

November 17, 2022 By Leave a Comment

Source: https://unsplash.com/photos/xKmXZ4Fv63w

Many celebrities find it difficult to manage their finances responsibly, but not all end up in debt. Some rich and famous, however, have got into real trouble when it comes to money, or, rather, the lack of it. See who among the well-known celebrities has got themselves into debt and lost all their money or got back on track.

Michael Jackson

Some sources claim that when Michael Jackson died, he was around $400 million in debt. What led to such a liability? Although he was an extremely popular music star, the King of Pop as he was called, it did not stop him from excessive spending and borrowing money for an extravagant lifestyle. What’s more, Michael Jackson led numerous legal battles, which added to his enormous debt at the time of his death. The reports say he blew his fortune on luxurious cars, houses and much more to support his lavish lifestyle.

Ben Affleck

A famous actor, recently in the spotlight due to his marriage to singer J.Lo, a few years back had a real problem with gambling addiction. He himself admitted that he might have a problem, as he was banned from playing blackjack in Hard Rock Casino. The actor was accused of cheating, and the managers asked him to step back after simply playing too well. He won $800,000 at Hard Rock Casino but is no longer allowed to approach the blackjack table at this spot. Even though Ben Affleck did not get himself in some serious trouble and did not get in debt, who knows what might have happened if he kept playing? We should not judge him, however. After all, who could resist the best online casino bonuses that give you a great chance to double your winnings, when you can play from every place in the world, in a completely safe way, and win real money? Everyone might get as excited as the famous actor, and there is nothing wrong with it, as long as you make use of safe and secure platforms.

50 Cent

An American rapper, best-known as 50 Cent, had his net worth even lower than the nickname he chose. After a period of partying and having an excellent time, he was said to be in debt of about $10 million up to even $50 million. In 2015, he was forced to file for Chapter 11 bankruptcy. However, in 2017, the rapper was allowed to get the bankruptcy discharged.

Burt Reynolds

Anyone who is interested in the Hollywood of the 70s and 80s must know Burt Reynolds. He was a real heartthrob back in his time. Burt Reynolds was a television series star (he also starred in movies), and his fortune was estimated to be about $40 million. However, he went into some wrong investments, and, on top of that, he went through a rather pricey divorce. All these forced him to file for bankruptcy in 1996. It is believed that the actor had around $10 million in debt.

Stephen Baldwin

Stephen Baldwin, the younger brother of Alec Baldwin, had a less prominent acting career than his brother but a much bigger debt. In 2009, he was forced to file for bankruptcy with around $2 million of debt. It is believed that he mostly owned money from two mortgages and a credit card debt, but there were also federal taxes involved (around $1 million). However, even after going bankrupt in 2009, in 2012, the actor was charged with failing to pay taxes. He was arrested and ordered in court to pay $300,000 or serve probation. The actor ended up on probation.

Charlie Sheen

The reputation of Charlie Sheen is well-known even to those who are not deeply interested in the life of Hollywood. He definitely deserved to be named the bad boy of the industry. At the time when he was working on the Two and a Half Men sitcom, he was one of the highest-paid actors. Even this did not prevent him from getting into a debt estimated to be around $12 million for mortgages, taxes, and legal fees, but also credit cards. Nonetheless, in 2016, his net worth was still around $150 million.

 

Filed Under: Celebrities, Debt

5 Benefits of Filing for Bankruptcy

July 20, 2022 By Leave a Comment

If you are in debt and are considering bankruptcy, there are five clear benefits that you can realize from filing for bankruptcy. Bankruptcy can be a great solution for several reasons. Learn more about the benefits of filing for bankruptcy to get rid of debt.

Why Do People File Bankruptcy?

According to information obtained from, the US Bankruptcy Court statistics, one of the biggest reasons that people file bankruptcy is because of medical bills. Another leading reason that people wind up filing for bankruptcy is that they lose their jobs. On average, according to the Department of Labor, people that are looking for a job spend about 11 hours a week looking for a job.

Most people do not take on debt that they have no intention of paying. There is usually an event that pushes them into bankruptcy. Unexpected situations crop up all the time and can change your financial picture quickly.

Bankruptcy Process

Bankruptcy does come with a lot of benefits, but it is a process. You will need to provide a complete list of creditors to your attorney. You will also have to attend meetings or mediation sessions to sit down with creditors. You want to be fully prepared for your mediation. Have all the documentation with you, and your payment history to ensure that your lawyer can negotiate on your behalf.

1. The Benefit of The Automatic Stay

One of the biggest benefits of filing for bankruptcy is the “automatic stay”. The automatic stay goes into effect as soon as you file for bankruptcy. The automatic stay prevents collections, phone calls, foreclosure actions, and repossessions by your creditors.

Once the bankruptcy is filed, creditors are barred from contacting you and they are barred from reclaiming their property through foreclosure or repossession. The automatic stay can stop foreclosure proceedings right in their tracks. It can also keep the repo many away who is trying to take your car.

2. Stress Relief Is a Big Benefit

If you are like most people that find themselves in debt with no way out, you will likely face a lot of calls from debt collectors. They likely call, text, call your job, send letters, and more to pressure you into making payments. You also may be dealing with a repo company looking for your car, or the threat of losing your family home. It is an extremely stressful situation.

Bankruptcy stops stress. Bankruptcy helps you to take a deep breath and get out from under suffocating debt and the fear you feel every time the phone rings. Learn more about the benefits of bankruptcy from an attorney today.

3. You Will Get a Fresh Financial Start

There are two different chapters of bankruptcy that are used to discharge consumer debt. Chapter 11 and a Chapter 7. The Chapter 11 option is often referred to as “reorganization bankruptcy”. It is a plan that helps you to pay off your debt over a specific period of time with less interest. In Chapter 11, you get to keep all of your goods. Unsecured debt is discharged, and secured debt is reorganized to help you pay it off.

In a Chapter 7 bankruptcy filing, everything but exempt assets will be sold to raise money to pay your debt. However, once you are discharged you will carry no debt. In a Chapter 11 case, the plan may take three to five years to pay off the debt.

An attorney can help you to decide which chapter is the right chapter for your situation. In both cases, once you complete the process, you will have a fresh financial start.

4. You Can Start Rebuilding Your Credit

Bankruptcy, contrary to popular belief, does not mean you will never get credit again. As a matter of fact, many creditors are out there willing to work with people that have filed for bankruptcy. You can start rebuilding your credit immediately.

5. Being Proactive About Your Finances Is Respected

When you realize you are in trouble financially, it is always best to be proactive. Filing for bankruptcy is not avoiding your debt, it is taking responsibility for your debt. You will feel better about yourself and creditors will see you in a different light. Speak to an attorney about the benefits of bankruptcy today.

Filed Under: Debt, Personal Finance
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