Consolidate Qualifying Bills Into One Lower Monthly Payment
- See your qualifying accounts
- Compare best consolidation options
- Request one lower monthly payment
- Avoid bankruptcy
These are uncertain times for everyone. We have a message of hope for you, your family and your neighbors. We're committed to guide and support you. We believe there's no place for passing judgment, only lifting each other up as we work together to remove the burden of financial difficulties. Together we are stronger.
Debt consolidation options provide a vital lifeline for Virginia residents who are struggling to keep up with minimum payments, those who have fallen behind, or those who are being forced to use credit cards or personal loans to take care of personal or business expenses.
Most of these accounts are eligible: credit cards, store cards, medical bills, personal loans, and other unsecured debts not backed by collateral.
These plans are designed to consolidate all qualifying accounts into one lower monthly payment so you can resolve financial burdens faster without declaring bankruptcy. This could immediately provide much-needed breathing room for you each month.
Bankruptcy is generally considered to be the option of last resort. There are several types of bankruptcy: Chapter 7 (straight bankruptcy or liquidation), Chapter 13 (reorganization of debts), and Chapter 11 (debt reorganization normally used by a business or partnership). While a successful bankruptcy can provide a fresh financial start – individuals or businesses should carefully consider bankruptcy before proceeding because of its long-term financial implications.
While bankruptcy is an option that has been able to provide a fresh start for many individuals, families, and businesses – it is a serious decision that should be carefully considered with the assistance of a financial advisor or attorney who can help determine if bankruptcy is the proper course of action.
Prior to 2005, those filing bankruptcy could choose the type of bankruptcy they preferred – and most elected to file Chapter 7 straight bankruptcy (liquidation) over Chapter 13 (structured repayment). However, rules enacted in 2005 now requires those filing Chapter 7 to pass a "means test" – to qualify, they must earn equal to or less than the average monthly income for a family of their size in their state.
In addition, before you can file for Chapter 7 or Chapter 13 bankruptcy, you are now required to complete credit counseling with an agency that has been approved by the United States Trustee's office.
While bankruptcy plays a vital role to help rescue individuals and businesses, it is important to recognize that it's not the only option. A debt specialist can provide more details on alternatives to bankruptcy as part of your free analysis and savings estimate.