The most frequent question that is asked is how are credit scores affected while enrolled in a debt management program. Let me first start off by stating that any and every debt relief or management program will negatively affect your score. In fact, anything short of paying off debt in a timely manner will negatively affect ones credit score. Now, that “disclaimer? is out of the way, let’s get to the facts.
This quote popped into my head the other day while I was worrying about some things I’m struggling with right now (one of those things being my finances). It was written by Thomas Paine, an American founding father who published Common Sense, perhaps the seminal literary event of the American Revolution.
Now, lest I get away from the purpose of this article, let me make clear: I am not going to suggest a financial revolution, a mutiny or a debtor’s coup. We all exist within the American financial system, which has grown and developed over decades into a relatively efficient machine. Overturning it would undoubtedly do more harm than good.
Here is an excerpt from my home study course “Short Sale Fundamentals” in the final phases of completion now.
The Homeowner is in Bankruptcy
First off you don’t ever want to offer legal advice to the homeowner unless under the rare situations where you’re a qualified attorney. Let’s discuss the two typical types of bankruptcies that you may encounter.
Chapter 7 - know as Liquidation
Chapter 13 - known as Reorganization
With either type you are going to have to contact the Trustee of the Bankruptcy to get the property released out of it.