You’re swimming in what seems like an endless sea of debt. It comes in all sorts of shapes and sizes- student loans, mortgages, car payments and credit cards. It seems like a nightmare that will never end, until suddenly, in your email inbox, the solution shines: a company offering you the eradication of all of your debt. If you’re willing to pay, these companies send you a magic certificate that, upon presentation to your creditors, will relieve you of all monies owed.

Does this debt elimination sound like a pipe dream to you too? That‘s because it is! These "Declaration of Voidance" and "Bond for Discharge of Debt" certificates aren’t worth anything; they draw from legal regulations in other countries that have no standing in our courts. The argument is that debt in and of itself is illegal, and so it should be rendered moot. However, in this country, in our economic system, if you owe money, you pay it. Our government has declared this the rule of the land, so even if you think debt is a form of slavery, the courts fail to agree.

So when this magical dream of an email ends up in your mailbox, your best option is to send it to the trash. If you indulge in such a dream, your bank account will be more shallow and your debt will still exist. Even though this dream may be disappearing before your very eyes, your dream of getting out from under the burden of debt is still attainable via other avenues.

Are there any legitimate options for eliminating debt?

If you’re looking to get rid of your debt, you have two choices. You can either pay back the money, or you can file for bankruptcy.

Now, paying back your debts may sound next to impossible, but if you do it responsibly and consistently, it is more of reality than the pipe dreams that fill your email inbox. The first step is to list all of the money owed, and the interest being collected on each debt. After you‘ve made this list, select the debt you most want to get rid of, and get rid of it! Then make sure you’re paying the minimum amount on every other debt you have.

It’s important to make sure you don’t get back into irresponsible spending habits. If you wind up with extra money at any given moment, that money should pay off the debt. As each amount gets checked off the list, move on to the next! Sure, it’s a lot harder than the process described by the companies with their magical certificates, but it works a lot better too!

If your debt is truly out of control, and you are unable to keep up with your financial obligations, Chapter 7 Bankruptcy may be your last chance. Though the rules are different in every state, your assets are typically liquidated, with the exception of  protected pieces of property such as your house, your car, and a certain amount in personal belongings. Your other property is sold off, with the proceeds going to pay back what you owe. Unfortunately, some debts, such as student loans, back child support, or court-ordered restitutions cannot be erased by a bankruptcy. However, at the end of the day, you have to do what you must.

It's natural to be concerned about the amount of debt in your life. It's even better to want to do something about it. When the time comes to implement said changes, what's really important is to listen to legitimate sources of advice, like a financial counselor. There are plenty of credible businesses out there, for profit and non-profit, who want to help you get back on your feet. Don't get taken in by the pipe dream of debt elimination certificates. If you can avoid the con-men out there, you can start living the dream.

 

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