Avoid bankruptcy and pay off bills from credit counseling.

With the weak economy, more families are struggling with their debt and may be considering bankruptcy. Studies show that credit counseling can help people avoid bankruptcy. Families who have been falling behind on their bills and debts and who are struggling to manage their unpaid debt, which can include their medical bills, mortgage and home loans, and credit card debt can get help from counselors.

A recent study shows that those households and individuals who are so impacted by the weak economy and financial woes that they are considering filing for bankruptcy need to strongly consider seeking help from a credit counselor before proceeding with any type of bankruptcy filing.

In addition to helping avoid bankruptcy, consumers who are behind in payments on their credit card bills and who have found themselves subjected to a cut in their line of credit, or higher interest rates, can also receive help from a credit counselor. They can provide them with a host of options to assist.

Does a credit counselor help with bankruptcy?

Yes. The study, according to the National Bankruptcy Research Center which worked closely the Management International Financial Education Foundation, has reported that consumers who used pre-bankruptcy credit counseling experienced improvement in their credit report and their overall financial situation in as little as two years, and were able to avoid a bankruptcy filing. Find some cases of when you should consider filing for bankruptcy. More.

 

 

 

The study from the National Bankruptcy Research Center had multiple phases. The second phase of the organizations' study on the importance of bankruptcy and credit counseling shows that recipients of credit counseling had fewer delinquent accounts and that they also kept their credit card bills current significantly longer than those who did not receive any pre bankruptcy filing or credit counseling.

And the truth is that with job losses continuing to mount, the economy not recovering anytime soon, the truth is that more personal bankruptcies are likely to occur.

As just one example, the Miami Herald has reported that families struggling with debt and personal bankruptcies have continued to increase in the South Florida area where bankruptcy filings in April were up over 50 percent from just last year, which is an astounding increase.

The source reports personal bankruptcies are on the rise mainly due to the fact that more and more people are losing their jobs and can’t find timely employment. In particular, in the case of the South Florida regions, the bursting of the residential housing market and commercial office space is taking a toll on those people who were employed or formerly employed in the real estate industry, including sales and construction.

This is a perfect case in which credit counseling can help people pay their bills, debts, and hopefully stay of out bankruptcy.