Many Consumers Finding Ways to Avoid Bankruptcy Filing
Dallas debt settlement company FH Financial says consumers are finding alternative ways to reduce debt and avoiding bankruptcy action.
fhfinancialservice.com - June 05, 2009
(PRNewsChannel) / Dallas, Texas / In 2008, bankruptcies rose more than 31 percent and 2009 statistics are showing signs that bankruptcies will continue that upward trend. Many consumers turn to bankruptcy to help them with their debt not knowing that there are many alternatives to bankruptcy, says FH Financial, a Dallas debt settlement company.
FH Financial Service focuses on helping consumers deal with their debt problems and finding a way to avoid filing for bankruptcy.
“Too many people run to the courthouse thinking that filing bankruptcy is the cure-all to their debt problems, says Alex Fender, vice president at FH Financial. “In hindsight, all too often they realize there are better debt reduction options without the long term implications of bankruptcy.”
What most Americans don’t realize is that bankruptcy will continue to haunt you for the rest of your life, Fender says. Employment applications ask if you have ever filed bankruptcy. Background checks will uncover the filing and even later in life when your children need student loans, there will be questions about the parents filing bankruptcy.
One alternative form of debt reduction to bankruptcy is debt settlement. Debt settlement is for people facing real hardships like loss of employment, divorce, serious medical problems and other hardships that prevent consumers from being able to pay their bills.
“Debt settlement is not for everyone though,” Fender says. “There are risks to settlement and consumers should first speak with a debt settlement company to find out if it will help them.”
"I have worked for a bankruptcy attorney for 13 years consulting consumers about chapter 7 and chapter 13 bankruptcies. It is plain and simple – bankruptcy is negative on your credit report for up to 10 years and will be a part of the rest of your life,” says Dennis McWain, a debt counselor for FH Financial. “Debt settlement programs only hurt your credit for three years and then it’s over. In most cases, bankruptcy costs much more than debt settlement. After working for the one largest bankruptcy law firms in Texas, I have found that debt settlement is a lot better than bankruptcy for most consumers."
FH Financial Service is a member of the United States Organizations for Bankruptcy Alternatives and the International Association of Professional Debt Arbitrators. It helps individuals facing financial crisis work with creditors to avoid bankruptcy and minimize the long term impact on an individual’s credit report.
The Dallas debt settlement company says each debtor’s individual circumstances are unique so consumers need to look into all forms of relief from their debt. Bankruptcy can benefit certain people but it is not the only option. Debt settlement is a proven method to help consumers reduce their debt without filing bankruptcy.
For more information, please visit: http://www.FHFinancialService.com
About FH Financial Service: FH Financial Service, Inc. is a debt relief and debt counseling company located in Dallas, Texas. The company is a member of both the International Association of Professional Debt Arbitrators and the United States Organizations for Bankruptcy Alternatives.
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