Balloon Payment - Lenders sometimes create a loan with a period of fixed interest payments for a fixed period of time, after which the entire remaining balance is due. This “balloon” payment is effectively the end of the loan as the borrower must either come up with all the remaining balance or refinance at that time.

Bankruptcy - Bankruptcy is an option for people who simply cannot meet their financial obligations and have little hope of doing so in the near future. Chapter 7 Bankruptcy is allowed once every 7 years and allows all debts to be “discharged” (erased). Chapter 13 Bankruptcy effectively puts into a payment plan for you to pay your debts affordably. Both bankruptcies hurt your credit, but in general Chapter 7 is faster to recover from and much less expensive financially. In general it is better to consider alternate methods such as debt consolidation and debt settlement rather than bankruptcy. Speak to a bankruptcy lawyer if you are considering bankruptcy. Call Crusader and we can refer you to one in the Denver area.