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Business Debt Consolidation A business debt consolidation may be able to lower your cost of credit through a second mortgage or a home equity line of credit. Since these loans use your home as collateral; interest rates will be lower. But, remember, if you can’t make the payments — or if your payments are late — you could lose your home. In October 2005, Congress made sweeping changes to the bankruptcy laws. The net effect of these changes is to give consumers more incentive to seek bankruptcy relief under Chapter 13 rather than Chapter 7. Chapter 13 allows people with a steady income to keep property, like a mortgaged house or a car, that they might otherwise lose through the bankruptcy process. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a three-to-five-year period, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts. Chapter 7 is known as straight bankruptcy, and involves liquidation of all assets that are not exempt. Bankruptcy is generally considered the debt management option of last resort because the results are long-lasting and far reaching.  Financial contracts are very confusing. Before signing yourself to a major long term commitment; have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.  Whether buying a new car, or a used car, or selling a vehicle; first check KBB (Kelley Blue Book), Black Book, Red Book, or the NADA Used Vehicle Guide. For complete information on all your financial needs, turn from business debt consolidation to the Loan homepage.  Business Debt Consolidation. |