If you are financially struggling to maintain your monthly obligations, and have been turned down for loan, and or are simply making you monthly installments on your current financial obligations...and find yourselves not able to maintain the current path that you are on.. there are other options for you. Below will explore all options legally available to you, to get back on your financial footing.


Below are you other financial options of getting out of debt



  • Debt Validation: 

    Debt Validation is process that challenges the legality of collection companies to collect the original debt balance that the original creditor has written off and discharged. 

    Debt Validation Firms specialize in verification of unsecured debts by applying the rules and regulations of the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA). Debt Validation Firms provide the knowledge, expertise and services that can help individuals develop a path to financial freedom through validation program. Debt Validation Firms understand that you are dealing with stressful circumstances, therefore they want to make choosing this option one less thing for you to worry about.

    In late 2010, the Federal Trade Commission (FTC) amended its Telemarketing Sales Rule (TSR) to ban any advance fees from debt relief providers. As a result, debt relief service providers are forced to adopt a performance based model where fees are not collected until services have been rendered. Although, the guidelines of the TSR do not apply to debt validation firms, most have taken a proactive stance of compliance and provide our services strictly under a performance based model. Meaning that they are not issued a fee in advance, until they perform the services in their terms and conditions agreements.

    While debt validation companies don't not settle, consolidate or provide credit card counseling, they can help you verify the validity of your unsecured debts by using the rules and regulations of the Fair Debt Collection Practices Act (FDCPA). It is your right to request verification of debts from third-party collectors such as collection agencies and collection attorneys. The validation process can be laborious and tedious, but you have nothing to fear if you hire a firm that are experts in this field to be by your side throughout the process.

    After you select a debt validation firm, they will collect all of your financial information. At this time, they will put every client through a qualification process, in which they will determine if their firm will accept your case. Upon being accepted into their Validation Program, they will design and coordinate a plan that you can afford and follow with ease.

    Once a consumer has been enrolled in our Validation Program, they will provide consumers with their contact information and request that they forward all correspondence from their creditors to them in a timely manner. On average it takes three to six months for clients to receive collection letters. This is due to the fact that original creditors have 180 days to charge-off and transfer accounts which have been continually in default. Once they are in receipt of your collection letters, they will respond on your behalf requesting that third-party collection agencies validate and verify the account before they proceed.

    In recent years, collection agencies and collection attorneys have aggressively pursued to collect on unsecured debts that have been charged-off by the original creditor. This is not illegal; however, often these agencies do not have the proper documentation and therefore the right to collect on those accounts. Through our validation process, debt validation firms force third-party collectors to provide proof that they can legally collect from you. Keep in mind that debt validation firms don’t dispute whether the debt is owed, unless there is truly a ground for believing otherwise. Debt Validation process is 100% legal, ethical and is the right granted to each consumer by statutory laws such as the Fair Debt Collection Practices Act of 1977 (FDCPA) and Fair Credit Reporting Act of 1970 (FCRA)



Credit counseling organizations are usually non-profit organizations that advise you on managing your money and debts. They usually offer free educational materials and workshops. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

NOTE: Although most of them are non-profit, credit counselors may charge fees for a debt management plan to pay off your debt and take those fees out of the payments you make to them.

Credit counselors may help you organize a "debt management plan" for all your debts. Under a debt management plan you make a single payment to the credit counselor each month or pay period. The credit counselor then makes monthly payments to each of your creditors.

Under debt management plans credit counselors usually do not negotiate any reduction in the amounts you owe - instead, they can lower your overall monthly payment. They may do so by getting the creditor to increase the time period over which you can repay a loan (for example, five years). They may also get creditors to lower the interest rates. Although most credit counselors are non-profits, they may charge fees for their services that they take out of the payments you make to them.



Debt settlement companies offer to arrange settlements of your debts with creditors or debt collectors for a fee. They typically offer to pay off your debts with lump sum payments that are less than the full amounts you owe. For example, for every $100 of a loan that a creditor agrees to forgive, the debt settlement company will charge you some portion in fees.

While credit counselors reach up-front agreements with your creditors to ensure that the creditors will not pursue collection efforts while you're in the credit counseling debt management program, debt settlement companies often have no such up-front agreements with creditors.

TIP: Beware of debt settlement companies that charge up-front fees in return for promising to settle your debts.

WARNING:  Many debt settlement companies will instruct you to stop making payments to your creditors. If you stop making payments, you may face collection efforts, late fees and penalty interest charges. These fees and charges will cause your debts to grow larger. In this way, debt settlement may cause your total debt-load to grow, even if the debt settlement company settles one or more of your debts.

If you stop paying your debts, your creditors will likely begin collection efforts and will start charging you penalty fees and interest. Debt settlement companies say that law suits and debt collection efforts are key factors preventing clients from successfully completing a debt settlement program.

While some creditors and debt collectors will agree to settlements with debt settlement companies, many will not negotiate how much they will settle for. Instead, they will have standard policies about how much principal they will forgive when you haven't made payments for a certain period of time. This means debt settlement companies usually can't get better terms than you could get by talking to your creditors yourself.

WARNING: Some creditors and debt collectors will not negotiate with debt settlement companies at all. Once they learn you are working with a debt settlement firm, their collection efforts may become more intense. For example, the collector may file a lawsuit against you.

In most circumstances, neither credit counselors nor debt settlement companies can erase all of your debts.

TIP: If you simply don't have enough income to pay what you owe; you may consider filing for bankruptcy. Filing for bankruptcy can have long term consequences so consult a bankruptcy attorney to learn whether bankruptcy is a good solution for you.


  • Bankruptcy Chapter 7

A chapter 7 case begins with the debtor filing a petition with the bankruptcy court serving the area where the individual lives or where the business debtor is organized or has its principal place of business or principal assets. (3) In addition to the petition, the debtor must also file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a statement of financial affairs; and (4) a schedule of executory contracts and unexpired leases. Fed. R. Bankr. P. 1007(b). Debtors must also provide the assigned case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case (including tax returns for prior years that had not been filed when the case began). 11 U.S.C. § 521. Individual debtors with primarily consumer debts have additional document filing requirements. They must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts. Id. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). Even if filing jointly, a husband and wife are subject to all the document filing requirements of individual debtors. (The Official Forms may be purchased at legal stationery stores or downloaded from the internet at www.uscourts.gov/bkforms/index.html. They are not available from the court.)

The courts must charge a $245 case filing fee, a $75 miscellaneous administrative fee, and a $15 trustee surcharge. Normally, the fees must be paid to the clerk of the court upon filing. With the court's permission, however, individual debtors may pay in installments. 28 U.S.C. § 1930(a); Fed. R. Bankr. P. 1006(b); Bankruptcy Court Miscellaneous Fee Schedule, Item 8. The number of installments is limited to four, and the debtor must make the final installment no later than 120 days after filing the petition. Fed. R. Bankr. P. 1006. For cause shown, the court may extend the time of any installment, provided that the last installment is paid not later than 180 days after filing the petition. Id. The debtor may also pay the $75 administrative fee and the $15 trustee surcharge in installments. If a joint petition is filed, only one filing fee, one administrative fee, and one trustee surcharge are charged. Debtors should be aware that failure to pay these fees may result in dismissal of the case. 11 U.S.C. § 707(a).

If the debtor's income is less than 150% of the poverty level (as defined in the Bankruptcy Code), and the debtor is unable to pay the chapter 7 fees even in installments, the court may waive the requirement that the fees be paid. 28 U.S.C. § 1930(f).

In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must provide the following information:

1.       A list of all creditors and the amount and nature of their claims;

2.       The source, amount, and frequency of the debtor's income;

3.       A list of all of the debtor's property; and

4.       A detailed list of the debtor's monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc.

Married individuals must gather this information for their spouse regardless of whether they are filing a joint petition, separate individual petitions, or even if only one spouse is filing. In a situation where only one spouse files, the income and expenses of the non-filing spouse are required so that the court, the trustee and creditors can evaluate the household's financial position.

Among the schedules that an individual debtor will file is a schedule of "exempt" property. The Bankruptcy Code allows an individual debtor (4) to protect some property from the claims of creditors because it is exempt under federal bankruptcy law or under the laws of the debtor's home state. 11 U.S.C. § 522(b). Many states have taken advantage of a provision in the Bankruptcy Code that permits each state to adopt its own exemption law in place of the federal exemptions. In other jurisdictions, the individual debtor has the option of choosing between a federal package of exemptions or the exemptions available under state law. Thus, whether certain property is exempt and may be kept by the debtor is often a question of state law. The debtor should consult an attorney to determine the exemptions available in the state where the debtor lives.

Filing a petition under chapter 7 "automatically stays" (stops) most collection actions against the debtor or the debtor's property. 11 U.S.C. § 362. But filing the petition does not stay certain types of actions listed under 11 U.S.C. § 362(b), and the stay may be effective only for a short time in some situations. The stay arises by operation of law and requires no judicial action. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.

Between 21 and 40 days after the petition is filed, the case trustee (described below) will hold a meeting of creditors. If the U.S. trustee or bankruptcy administrator (5) schedules the meeting at a place that does not have regular U.S. trustee or bankruptcy administrator staffing, the meeting may be held no more than 60 days after the order for relief. Fed. R. Bankr. P. 2003(a). During this meeting, the trustee puts the debtor under oath, and both the trustee and creditors may ask questions. The debtor must attend the meeting and answer questions regarding the debtor's financial affairs and property. 11 U.S.C. § 343. If a husband and wife have filed a joint petition, they both must attend the creditors' meeting and answer questions. Within 10 days of the creditors' meeting, the U.S. trustee will report to the court whether the case should be presumed to be an abuse under the means test described in 11 U.S.C. § 704(b).

It is important for the debtor to cooperate with the trustee and to provide any financial records or documents that the trustee requests. The Bankruptcy Code requires the trustee to ask the debtor questions at the meeting of creditors to ensure that the debtor is aware of the potential consequences of seeking a discharge in bankruptcy such as the effect on credit history, the ability to file a petition under a different chapter, the effect of receiving a discharge, and the effect of reaffirming a debt. Some trustees provide written information on these topics at or before the meeting to ensure that the debtor is aware of this information. In order to preserve their independent judgment, bankruptcy judges are prohibited from attending the meeting of creditors. 11 U.S.C. § 341(c).

In order to accord the debtor complete relief, the Bankruptcy Code allows the debtor to convert a chapter 7 case to a case under chapter 11, 12, or 13 (6) as long as the debtor is eligible to be a debtor under the new chapter. However, a condition of the debtor's voluntary conversion is that the case has not previously been converted to chapter 7 from another chapter. 11 U.S.C. § 706(a). Thus, the debtor will not be permitted to convert the case repeatedly from one chapter to another.