There is no particular relationship between debt consolidation and total debt
As a matter of fact there is nothing in particular such as not being able to do debt consolidation if there is no debt of more than a certain amount. If you come to believe that debt expands and it is difficult to repay it, you can start doing it at any time by asking a lawyer etc.
At the same time as the procedure is started, payment obligation is temporarily suspended, how much reduction should be made for survey of interest paid too much under experts and debt repayment, bankruptcy application etc We will be doing some work and choices.
However, it is a strange feeling that it is necessary to release all the property such as house and automobile for self-bankruptcy for debt reduction of hundreds of thousands of yen.
In fact, in fact, in the case of such a small case, there is basically no use of self-bankruptcy procedures. Because there is a way to deal with debt debt with less money. That is an optional arrangement that we will introduce in the next paragraph.
Debt consolidation easier to use even with a relatively small debt, what is arbitrary arrangement
Arbitrary sorting is the process of debt consolidation that negotiates with the loan company to reduce the debt and reset interest rates, reduces the monthly repayment amount, and makes reasonable repayment that does not adversely affect the living It is.
If you do this, your debt will be reduced and you will only be charged for the remaining amount. However, because it is direct exchange with the company, it is possible that the opponent does not agree with the conditions favorable here such as absolutely paying the fee, there is a possibility that the negotiations will be difficult.
Arbitrary sorting is a procedure to negotiate directly with the creditors without using the court and redefine the debt amount and debt repayment method, and it is not particularly based on the legal system. Therefore, it is possible to do this for extremely small amount, such as debts of tens of thousands of yen.
However, since the cost of hiring a lawyer, such as funds to start with, will basically take, it is not realistic to use it with a very small amount of money, and it will not make any sense.
Debt consolidation in the case of a large debt, civil rehabilitation and self-bankruptcy
Even if the debt is large, it is possible to choose voluntary pruning, but in such cases it is almost impossible to pay even if it is reduced. Therefore, there is a method that can reduce the big debts such as civil rehabilitation and self-bankruptcy.
The civil rehabilitation is to allow the court to pay debt payment and reduce the debt to the extent that it can be repaid in three to five years’ worth of that person’s income.
Self-bankruptcy can also be released entirely from debt, exempting payment obligation in exchange for relinquishing all expensive assets.
Both of them seem to be superior to arbitrary sorting, but there are disadvantages such as restrictions on occupation, so it is not clear which one is best.
There are several ways of debt consolidation, and suitable cases are different depending on each method. It is a good idea to memorize discretionary cases when there is little debt, and civil rehabilitation and self-insolvency in many cases.