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Michigan Debt Settlement / No Upfront Fee Debt Relief services in MI

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Become Debt Free in as little as 12–36 months!
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Practical Debt Relief does not offer or constitute legal advice. For legal advice regarding your situation, please contact a licensed attorney in the state of Michigan.

Michigan Debt Settlement

According to census.gov, estimated population in Michigan in 2009 was 9,969,727. On June 9th, 2010 Credit Karma has released a report marketwire.com showing the states that have increased the number of average credit card debt since May 2009. Michigan was the second state on the list, showing an increase of almost 20% to $7,468. Furthermore, based on facts provided by census.gov, real median income has decreased in 34 states between 2008 and 2009. Michigan was amongst the states with the largest decreases (by 6.2 percent). Actually, according to seekingalpha.com, average American household income for last year was less than 10 years ago, though costs of living continue to rise.
Also, because of new Credit CARD (Card Accountability, Responsibility and Disclosure) Act taking effect in February 2010, credit card lenders lost billions of dollars in fees. You can find details of the new Act here bucks.blogs.nytimes.com.
Due to the above reasons banks became more aggressive in recollection of delinquent debt in order to decrease their losses. This includes suing the debtor in hopes to receive a judgment, which they can later use to garnish a debtor’s paycheck, freeze bank account(s), or lien real property. However, there is a limited period of time for creditors to sue. According to bcsalliance.com, creditors have 6 years since default to file a lawsuit to collect the debt. This timeline applies to open accounts (credit cards) and written contracts. Nevertheless, if the creditor was able to sue and obtain a judgment against the debtor within that time period, account will then accumulate post-judgment interest, the judgment itself will be enforceable for 10 years, and can be renewed thereafter. Judgment gives creditors an ability to secure the debt, by attaching debtor’s wages, bank account and/or real property to it. In Michigan, judgment creditor can garnish up to 25% of every paycheck (after taxes). The only exception is income that is near, equal or bellow thirty times the federal minimum hourly wage, which is currently $7.25, according to Department of Labor (www.dol.gov). This means that if an individual makes bellow, close or equal to $217.50 per week, your wages are protected from garnishment. Supplemental Income Benefits, Social Security, Unemployment benefits, Disability, Pension that is paid by the government (almost any kind of financial supplement paid by the government) are not subject to garnishment. There is however, an exemption to this rule, because it only applies to private lenders. Any type of government-backed debt, such as student loans, alimonies, child support, taxes, follows different garnishment rules. You may want to consult an attorney licensed to practice law in Michigan, to find out more about garnishment.
If you fall into a category of consumers experiencing financial hardship due to job loss or decreased income, health problems, increased expenses, climbing interest rates, or other circumstances that prevent you from being able to meet your financial obligations to your creditors, there are different Michigan Debt Relief options available:

• BANKRUPTCY:
 
The two most common types of Bankruptcy are Chapter 7 and Chapter 13; however, not many consumers know the difference. CHAPTER 7: According to bankruptcylawinformation.com, Chapter 7, Liquidation, Chapter 7 is known as straight bankruptcy, or liquidation bankruptcy. This means your assets will be sold, with a few exceptions. Exempt property may include cars, work-related tools and basic household furnishings. Some property may be sold by a court-appointed official-a trustee-or turned over to creditors. You can receive a discharge of your debts under Chapter 7 only once every six years, and it stays on your credit report for 10 years. Bankruptcy, however, is for life. Loan applications and many job applications ask if you have ever filed for bankruptcy. Ever. If you lie to get a loan because your bankruptcy is very old, technically you have committed criminal fraud. CHAPTER 13: Chapter 13 Bankruptcy, more like a payment plan, stays on your credit report for seven years. Chapter 13 filing may be preferred over Chapter 7 for consumers with assets they don't want to lose, and those willing to retire as much of their debts as possible under a less-pressured structure. Some debt balances may be partially liquidated, and the filer agrees to a monthly payment to the trustee for the remaining creditors.
Effects of Bankruptcy: Damaged credit is not the only negative result of Bankruptcy. Bankruptcy is listed in the top five life-altering negative events that we can go through, along with divorce, severe illness, disability, and loss of a loved one. Very few people that have gone through bankruptcy would say that it is just a painless cleaning of your debts, where afterwards you can easily begin your new life. Read for more information about our Michigan Debt Settlement program for a viable Bankruptcy Alternative.
 

• CREDIT COUNSELING
(Debt Consolidation, Debt management)

CCCS (Consumer Credit Counseling Service) will evaluate your financial situation and help you organize your budget. The company will then contact your lenders and negotiate a lower interest rate. For some consumers it might be a substantial decrease in interest, however, most people reported difference of only few percent. You are them quoted a single monthly payment, which will already include CCCS company fee (anywhere from $10 to $140 per month according to bcsalliance.com), and then disburse the funds to your creditors. CCCS providers also get to keep a part of your payment as a commission. CCCS will not decrease the principal amount you owe to your creditors. They will also not report your participation in their services to the credit bureaus. However, there is a high likelihood your creditors will, which could affect your credit in a negative way by making it seem as you are not able to manage your finances without outside help.
According to edebtfree.org, nearly 65-70% of people will never complete the CCCS program because they cannot afford a payment that is only SLIGHTLY lower than all their credit card payments combined. In fact, you can read what some of the people using SSSC thing here consumeraffairs.com


• TAKE NO ACTION:
 
If you are reading this article and made it this far, you must be struggling making your payments to creditors, and looking for options. Many people are facing this situation, and some of them think that if they live paycheck to paycheck and can’t even make their minimum payments after putting food on the table and paying for roof over their head, then obviously there is nothing that their creditors can take from them, right? WRONG! If the creditors cared about the consumer, you would never be reading this looking for ways to get out of debt. You are just another person struggling to provide for yourself and your family, not being able to afford the things that you want, living paycheck to paycheck and paying high interest, so someone’s child can have a new BMW on his or her 16th Birthday. Sad, but it’s true. And if you think that your creditors will hesitate to sue you because they will understand what you are going through and finally have a heartbeat, then you obviously did not browse the Internet on this subject. Unfortunately for the debtor, money wins. That is why doing nothing because you think you cannot afford anything to get out of debt, will potentially harm you even more, and result in potential lawsuit, which results in a judgment if they win. What does it mean to creditors? –Access to your assets! What does it mean to you? –being paid 25% less if you are employed, having a lien on your home if you have a mortgage, of frozen bank account, if you have one. It is obvious that ignoring the problem will eventually hurt you even more.

• DEBT SETTLEMENT:
 
While this may not be the best option for some people, generally, it is the fastest and most effective option to eliminate your unsecured debt without going through Bankruptcy. Michigan Debt Settlement is only suitable for individuals who truly need Debt Help and currently struggling to make their monthly payments. When you work with a legitimate licensed debt settlement company, you are beginning to see the light at the end of the tunnel. Typically, the company will negotiate with your creditors to reduce the principal balance on your accounts by half or more! See the deals Practical Debt Relief, Inc. got for their client HERE. Experienced debt settlement company knows how much each bank will settle for, and based on that will give you a quote for an affordable monthly payment for a period of 12-36 months (depending on how much debt you have). This payment will go to the FDIC insured Special Purpose Account that is assigned to you only, and not the company; however, the company can view how much funds accumulated in this account in order to know how much money is available towards potential settlements. You have full access to your funds 24 hours per day online. Once the debt settlement company has negotiated a settlement, you will be contacted and advised about the deal. You can then either accept or reject it. It is probably the only option that puts you in control and gives you an ability to make a choice. It is probably the only option that allows you to avoid bankruptcy, yet get out of debt in a faster, more affordable way.

IF YOU WANT TO KNOW HOW FAST YOU CAN GET OUT OF DEBT, CALL OUR FREE INFORMATION LINE TO SPEAK TO A DEBT SPECIALIST!

 

 

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I didn’t think it was possible to cut my debt by over half. The stress of the phone calls and loss of credit was causing my blood pressure to skyrocket. Now, I feel much more relaxed and know I am on the plan to success. Thank you Practical Debt Relief.
Bill, Florida

Thanks for your hard work and being so patient with my Crazy Debt Situation. I am sleeping better at night because of you.
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I never knew I had so many options when it came to handling my debt. Thank you Practical Debt Relief for taking me through the process and caring for my situation. The results are fast and impressive.
Kristi, California

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Practical Debt Relief, Inc.
5210 S University Dr Suite 104 Davie, Fl 33328
● Phone: # 888-839-3574 ● Fax: # 888-853-7651