How is Debt Settlement different than Bankruptcy?
New Bankruptcy Laws Effect Debt Settlement Chapter 13 With Debt Free Angels Upfront Money Needed? $3000 to $5000 $0 Amount of unsecuried debt I am expected to pay? 75% to 100% Still Owed of Total Value PLUS Interest and Penalties Continue 40% Owed of Total Value but Interest and Penalties Stop so you can pay off the balance Affect on my future Credit Score? 10 years bad credit and will have to be declared the rest of your life for loans, legal documents, job applications etc… Debt Free Angels does NOT report you to the Credit Bureaus. Long term, your credit score improves and is wiped clean off your Credit Report as each of your debts are settled. Affect on my ability to buy a home or car? YES, you will be denied unless you pay much higher interest rates NO Negative Long Term Affect, LOAN OFFICERS WILL NEVER KNOW Affect on my employment status? YES, It’s a Negative NO PENALTY, EMPLOYERS WILL NEVER KNOW… Amount of Paperwork? LOTS! EASY! Budgets, balance sheets, profit and loss statement
