Is it better to use a Debt Consolidation Company or File Bankruptcy when you own a home and income property?
Question:
Answer:
Neither!
Talk to your banks about using your properties as collateral.
File Bankruptcy
Don't listen to that girl who answered. Use a Consolidation company, if you file bankruptcy it will haunt you forever. Want a credit card 5 years from filing, well you might and probably won't get one because they'll see you filed bankruptcy. Trust me or talk to a professional use a debt consolidation company, or if its a credit card company, talk to some one high up and ask if you can write an offer to settle that debt. A relative of mine had $14,000 in credit card debt and wrote an offer of $6,000 and it was accepted. Just whatever you do don't file for bankruptcy. Good luck
That will depend greatly on how much of your assets you want to hold on to as well as having the resources to make payment on your debts. Bankruptcy could result in the loss of all your assets save the primary residence in which you are living plus some other assets like your vehicle and such. (varies from state to state) Because there are different types of bankruptcies as well you should check with an attorney. Debt consolidation may offer you the opportunity to retain a larger portion of your holdings especially if you have income property that can eventually lift you out of the slump. Off the top of my head I would say debt consolidation but for sure get yourself a consultation with an attorney. Look in the yellow pages for Free Consultation.
Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
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