Millions of consumers are crushed under the burden of debt after the recent economic depression in the US. In such situations, people either rely on debt settlement services or they file for bankruptcy as a last resort. These two debt settlement solutions help people to start their financial life afresh. But before you select a debt settlement solution, it is essential to understand the differences between debt settlement and bankruptcy. A comparative analysis can help you make the right decision.

Debt Settlement vs. Bankruptcy: The Basics

The functions of debt settlement and a bankruptcy declaration are very different.

What is Debt Settlement?

Debt settlement is a form of a “financial workout” for consumers. It generally involves a repayment plan where the debtor consolidates his or her payments into small, affordable monthly installments and ultimately pays less than he originally owed to the creditors. Debt settlement companies employ experts in this field who will negotiate with creditors on your behalf and reduce your debts. Unlike bankruptcy, your credit report will indicate favorably that your debt was “settled” or “resolved,” rather than “unpaid.“

What is Bankruptcy?

Bankruptcy is a legal procedure where a petition is filed in the bankruptcy court to discharge your debt entirely. There are two types of bankruptcy methods for individuals: Chapter 7, and Chapter 13.

A Chapter 7 bankruptcy is the most frequent type of bankruptcy filed by consumers. It is a liquidation arrangement, where all debts are wiped out completely. This form of bankruptcy is available to individuals, married couples, those in partnerships and corporations.

A Chapter 13 bankruptcy includes a debt repayment plan available for individuals and married couples who have debts that fall within a specific statutory amount. Chapter 13 allows debtors to repay either some or all of their debts from their projected future income over a 3 to 5 year period

Debt Settlement Services: A Closer Look

Debt settlement services are a simple debt reduction method that will help you achieve financial liberation. To settle your debt, you can hire the services of any number of debt settlement companies, or you can settle your own debt with a “do it yourself” debt settlement plan.

Using a debt settlement company like Legal Helpers Debt Resolution (LHDR)-Help LLC, you can benefit by having an expert negotiate with your creditors on your behalf. They will generally approach the creditors (typically banks) with a larger amount of debt that is created by bundling together the various debts of many clients and using that leverage to ultimately obtain a greater debt reduction for the whole group. For the best results, make sure to find a debt settlement company you trust.

No debt can be settled without the mutual consent of the debtor and creditor. Whenever you fail to pay your full obligation to your creditors, your credit is negatively affected. However, once your individual accounts are settled your creditors are required to report this information to all major credit reporting bureaus. This updates your individual credit report and allows you to start rebuilding your credit right away.

Declaring Chapter 7 Bankruptcy: A Closer Look

When you file for Chapter 7 bankruptcy, it stops all collection actions by creditors, including foreclosures, repossessions, and garnishments. If you have filed bankruptcy with an attorney, she or he shields you by handling all inquiries from creditors. However, you will lose all your credit cards and you may have to give up some luxury possessions. You will also need to complete a credit counseling session before filing a petition in the court.

You may be able to discharge your unsecured debt by filing bankruptcy, but the stigma of bankruptcy remains on your credit report for up to 10 years. This makes it extremely difficult to acquire credit, buy a home or car, get life insurance, or even get a job. A recent bankruptcy also makes it nearly impossible to get a mortgage, although it will likely become easier after five years.

The Chapter 7 bankruptcy procedure is usually completed within 6 months, whereas it can take 3-5 years to complete a repayment plan under Chapter 13.

Evaluating Debt Settlement vs. Bankruptcy

When you hire the services of a debt settlement company, your payment plan will incorporate a fee. That fee generally amounts to 15-17% of your total debt. On average, the typical debtor will reduce his debt to 55 cents on the dollar (including the debt settlement company fee).

When you file a bankruptcy petition in court, you are required to pay several hundreds of dollars in filing fees. Your attorney will also charge a consultation fee, which is imposed before any services are rendered.

When it comes down to debt settlement vs. bankruptcy, it’s best to analyze your financial situation carefully in order to choose the course of action that’s best for you and your family. We hope this overview helped you make the right decision!

Across the country, the national debate over how to solve the medical malpractice crisis and who is to blame has been heating up. The insurance industry is pointing fingers at the civil justice system, namely medical malpractice attorneys,as being responsible for these increases over the last two decades. On the other hand, an argument is being made that the insurance corporations risky financing schemes are causing the spike.

Medical Malpractice Attorneys Are Not to Blame

The argument that medical malpractice attorneys are to blame for these spikes in insurance rates seems to be unfounded. Many people claim that there are too many malpractice lawsuits and as a result, they are driving up the cost of insurance premiums; however, with a close examination of the facts this is just not the case. For instance, medical malpractice insurance rates have risen less rapidly than medical inflation. Medical costs have gone up 113% since 1987; meanwhile, the total amount spent on medical malpractice insurance has gone up only 52%. This is less than half the cost of medical inflation. In short, the cost of insuring against medical errors is going down.Additionally, according to the National Association of Insurance Commissioners claims are down. These facts show that medical malpractice attorneys are not accountable for the crisis.

Insurance Reform is What is Needed

Insurance corporations control the health care system and premium prices in the United States; therefore, it is the insurance companies that are to blame and not medical malpractice attorneys. The under-regulated, powerful, international insurance industry has seized control of America’s health care system and is driving up prices for everyone, everywhere, not just for doctors. In the 1990s, the insurance industry underpriced rates and sold policies at a loss, then as early as 1999 they started telling doctors that rates were overdue for a radical hike. Rates were called “irresponsibly low” and the blame was placed on competition for market share. Now the scapegoats are the victims whose lives have been ruined by medical errors.

Joshua Just, a former attorney in New York City, has over 20 years of experience as a lawyer.

With universal health care bringing health insurance to the public’s attention in more ways than ever before, people are looking to medical discount card programs to help ease the burden of expensive health insurance costs.

A Medical Discount Card Program is similar to a dental or vision or prescription discount card, but promise discounts on a broader array of health care needs. A medical discount card program can be used for doctor visits, hospitalizations, laboratory testing, and other health care services.

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TASC Supports New Mandates on Debt Restructuring Firms

Lawyers for the FTC have succeeded in arguing for several new restrictions on debt settlement companies, culminating in a new policy making legislation coming from the government.

Starting on October 27, 2010, for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card or other unsecured debt.

In addition, the lawyers have successfully argued for mandated enhanced disclosure requirements. These are modeled on current and proposed standards from the industry’s leading trade association, TASC (The Association of Settlement Companies). TASC already offered guidance and regulations for debt restructuring companies, something I talked about in my earlier post: What to Look for in a Trustworthy Debt Settlement Company. before FTC lawyers and legislators got involved.

TASC originally opposed one key part of the proposed legislation: the prohibition of debt settlement companies from accepting fees from a consumer for debt settlement services prior to the actual settlement of the consumer’s debt.

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Approximately 46 million people are uninsured in the United States and are greatly in need of affordable comprehensive medical care. The new health bill that was passed into legislation by the Obama Administration in March of 2010 is the most far-reaching health regulation since the creation of Medicare and Medicaid. Of the 46 million who are uninsured in the United States, five groups could benefit the most from affordable health insurance. By 2019, the new health bill aims to expand health insurance to these five groups of Americans and to nearly 32 million people.

Five Groups of Americans who could Benefit the Most from Affordable Comprehensive Medical Care

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Tips to Finding the Best Personal Injury Lawyer

If you or someone you know has been injuredthen you are going to want to hire the best personal injury lawyer to take on your case.Finding the right personal injury lawyer to handle your case can be a difficult task. That is why we’ve put together some tips to help you choose the best personal injury lawyer for your specific needs.

Selecting the Best Personal Injury Lawyer

1. Contact the American Bar Association – Go online to the ABA website for a referral list of the best personal injury lawyers in your area.
2. Get Recommendations – Talk to friends and family members if they know a good lawyer. A friend’s recommendation is very valuable because you know you can trust their opinion.
3. Ask for Referrals­– While friends are great for a recommendation, your current lawyer can also refer you to colleagues and lawyers that specialize in personal injury cases.
4. Search Online – Once you’ve got a list of personal injury lawyers, go online and look up any information about the lawyer or their law firm. Do they appear to have expertise in the field? Does their website have any information that is helpful to you?
5. Interview Several Lawyers –After you’ve done your research and narrowed down your list, set up appointments with the remaining lawyers, and ask them about their experience, your specific case and what he or she recommends. Make sure you would get along with the lawyer before hiring them.

Finding the best personal injury lawyer to handle your case may take some time and research, but with sensitive cases like these, you will want to take your time and make sure you have the best fit for you.

Joshua Just, a former attorney in New York City, has over 20 years of experience as a lawyer, which gives him unique insight to many legal matters.

If you are planning to file for Chapter 7, first consider the pros and cons of retaining a bankruptcy attorney and going through with it. Take a look at this list of the pros and cons of bankruptcy and decide what is the right move for you in your current financial situation.

The Pros of Bankruptcy:

Hiring a bankruptcy attorney can be a debt management tool to help solve your financial problems.

1. Fresh Financial Start – The biggest advantage of having a bankruptcy attorney file your claim is obviously the hope of obtaining a fresh financial start once your debts have been discharged.
2. Automatic Stay on Debts – Creditors must stop their collections efforts when you file for bankruptcy. All collection actions from creditors will be stopped including: foreclosures, repossessions, and garnishments. If they haven’t, contact your bankruptcy attorney immediately to bring the matter in front of a judge.
3. Protection of Essential Property­– In most states, your home, car and other essentials are exempt so your bankruptcy attorney will ensure you do not wind up homeless or unable to get around.

The Cons of Bankruptcy:

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Deciding Whether or Not You Need a Lawyer

In many cases knowing when you need a lawyer is a no brainer, such as when you are being sued or if you’ve been arrested. However, there are other legal matters in which you will to need a lawyer that are not as obvious. From real estate transactions to child support cases, there are many circumstances in which you should seek advice or expertise from a lawyer. The following are just a few of the common legal matters that should be discussed with or handled by a lawyer.

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Before choosing an attorney and signing a retainer, it is important that you make a list of questions for a lawyer.The answers to these questions will help you determine who is the best attorney to handle your specific case. An experienced attorney who has the means and resources to commit to you and your needs is crucial for resolving any legal matter. Every case is unique so the answers to these questions for a lawyer will vary depending on the legal matter. Know before you interview a prospective lawyer what your needs are and what you require from your attorney.

Questions for a Lawyer

The following are some of the top questions for a lawyer that you should ask before you put him or her on retainer:

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For lawyers, the mystification regarding the laws surrounding lawyer referral fees can be a common complaint.  As I mentioned in an earlier article, only lawyers can receive referral fees.  Many attorneys think this is an outdated practice, as it completely goes against how most other businesses operate. Giving someone an incentive to help you bring in new business should not be considered a crime. And yet, referral fees to non-lawyers is considered attorney misconduct. Today I ask you – should it be?

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