The new bankruptcy law require anyone seeking to be declared bankrupt must take credit counseling classes. Credit counseling and debt management plans have been approved by the Federal Trade Commission and other governmental authorities. You may be concerned however, with making sure that your Collinsville credit counseling organization is good enough to really help you. The important criteria to look for in choosing a credit counselor is making certain the counselor is licensed.
For help in selecting a counselor, contact attorney JD Graham P.C. who is highly experienced in bankruptcy. Since you must file a certificate of completion of a credit counseling course when you file for bankruptcy, you may need Graham’s help to stop collection activity immediately. Credit counseling organizations and debtor education course providers approved by the U.S. Trustee Program are the only organizations which may issue these certificates. You must also file evidence of completing debtor education after you file for bankruptcy, so your debts will be discharged.
Credit Counceling Collinsville IL is available from many sources, but they are not licensed by the FTC to conduct courses which comply with the FTC requirements. Some of these credit counseling services are licensed by Illinois to conduct debt reduction negotiations with your creditors otherwise known as debt settlement. There are disadvantages to this plan:
* Credit ratings suffer.
* The debt will never be completely eliminated.
* Credit card companies may not cooperate.
* The debt and the interest do not stop.
* Collection calls can continue.
* Debt that you don’t pay can be taxed as income.
* Negotiations can carry on for 180 days and so does the debt.
The three methods of relieving debt which the Illinois Credit Counseling in Collinsville offer is; debt consolidation, management, and counseling. These all have different outcomes and different fees. Each will affect your FICO score differently, but none will raise it. The FICO score is related to the percentage of unused credit and the number of late payments.
