Is Bankruptcy the Right Road For You?
What is bankruptcy?
Bankruptcy is a way for people to legally wipe their "debt slate" clean. Chapter 7 is a way to start new and Chapter 13 is a way to repay your debts with new terms. Each type of bankruptcy has its pluses and negatives. Read on for information you need to know about what options are available.
Chapter 7 Bankruptcy
Filing for Chapter 7 makes it necessary for you to close out all non-exempt assets and pay off your creditors. If you lack sufficient income to pay your outstanding debts, Chapter 7 is generally used. This will allow you to start fresh and regain control of your credit and your life. There are some obligations that will not be discharged when you file for Chapter 7 such as: Child Support and Alimony, Student loans and Back Taxes, or Recent large purchases.
Chapter 13 Bankruptcy
When you have more income to claim that a Chapter 7 will allow or you have assets that need to be protected, filing for Chapter 13 is an option. When you are filing for Chapter 13 bankruptcy, you repay all or part of your debt. This allows you to reorganize payments and create a new payment plan that is manageable for you. Chapter 13 also allows you to keep a mortgage property soon to be foreclosed on or other assets in trouble that may be settled for under Chapter 7. Chapter 13 will stop all collections and foreclosures from happening and allow you to repay your debt.
Payments are made to a trustee who pays them in the manner called for in your new payment plan. This trustee has control over your financial assets and debt related to what you are filing for bankruptcy. All debt related matters are to be checked through your trustee.
Bankruptcy Repercussions
There are certain repercussions that come with filing for bankruptcy. It will inform everyone about your filing and personal affairs. Because it is a civil proceeding, it now becomes subject to public record. Your employer may be notified if deductions from your pay are required.
Bankruptcy will be on your credit report for up to 10 years and can affect your life. You may not receive a job, find it hard to rebuild new credit, or be rejected for insurance or a place to live. There are many fines and fees associated with bankruptcy as well. Court costs, filing fees, and attorney fees are just some of the expenditures. Your personal finances will now be in control of a trustee to oversee your spending. There may even be some debts that bankruptcy can not get you out of.
Other Alternatives
Take an inventory of all your debt and consider any other choice you may have. Only use bankruptcy as a last resort as there are some long-term consequences that come with it. Some other alternatives are debt consolidation, credit counseling, and paying your creditor in full.
Solutions
We may have the solution for you. Get the financial freedom you desire that doesn’t have to bring in courts or attorneys. Here is a listing of dependable and reliable specialists who will work with you to get your problems resolved. They will help you find the best solution to your specific needs.
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