Bankruptcy and Debt Consolidation

By: Wayne Hemrick

Filing for bankruptcy in the United States is not as easy as it once was for the individual. People file for bankruptcy for many reasons, but the main reason is that a member of the family has become chronically ill, and the family has gone into great debt due to medical expenses, and can no longer keep up with the balance due.

Although there are six types of bankruptcy, most families file for one of two types: Chapter 7 or Chapter 13. Chapter 7 bankruptcy covers individuals or businesses, and the debtor sells off his or her non-exempt property, the proceeds of which go to pay off the creditors. Some people have no non-exempt property, so due to this circumstance they are not required to sell off anything. In return, the debtor's debt is canceled, except for certain kinds, such as some taxes and support for a spouse. Chapter 13 bankruptcy helps the individual debtor who still has some type of income. It garnishes the future wages of the individual debtor for three to five years, in return for which the debtor gets to keep all of his or her property. In 2005, consumer lenders convinced Congress and the President to turn into law the Bankruptcy Abuse Prevention and Consumer Protection Act. Debtors must now pass a Means Test to qualify for bankruptcy under Chapter 7, and must take credit counseling, no matter what the cause for the bankruptcy.

All things considered, it might be a better option for many to look into debt consolidation over bankruptcy. Many people are seeking this type of help, and if you are a mortgage broker, then you have the products that they are looking for to help them avoid bankruptcy and begin to dig out from under their debt. These people are eager to learn about your loan products; all you need to do is find out who they are. One easy way to achieve this goal is to get qualified mortgage consolidation leads.

As you compare lead origination companies, you will discover the keys to recognizing quality loan debt consolidation leads. You will want leads that are not enticed to give their contact information because they will receive a prize for doing so. Instead, you want leads that want you to contact them with vital information to help them solve their debt nightmare. Another factor to consider is that reputable companies dealing in loan consolidation leads will also guarantee the accuracy of the contact information of the leads, and that the leads should have a high amount of unsecured debt they wish to extinguish. That, along with exclusive rights to each of the debt leads, will ensure a high closing rate for you, and bankruptcy relief for your new clients.

Bankruptcy
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