Reduce debt by up to 70% and Avoid bankruptcy

What is bankruptcy?

Nowadays, people with financial trouble consider bankruptcy as ultimate solution to their credit problems. While, it is a legal way for those burdened by too much debt to start over again or reorganize their payment schedule, the consequence should be thought of in depth as it can affect peoples lives for years.The 2 most common forms of bankruptcy used are dismissal (Chapter 7) or reaffirmation of debt to repay your debts, on new terms(Chatper 13). Each chapter has it's own merits and consequences that can affect you for years to come.

Bankruptcy is NOT the solution that it's portrayed to be.

Chapter 7

Chapter 7 bankruptcy, also called "straight bankruptcy", requires the debtor to liquidate all non-exempt assets to pay off their creditors in order of precedence. People qualify for Chapter 7 based upon their inability to pay their outstanding debts. This form of bankruptcy allows the debtor to get a "fresh start". You can get rid of unsecured debts (credit cards) quite easily. Getting rid of secured debts (a financed car) is not always so easy. Taxes and student loans are even more cumbersome.

Chapter 13

Those who have too much disposable income to file chapter 7 or have assets they want to protect may want to consider chapter 13. With chapter 13, the debtor reaffirms their commitment to repay all or a part of their debts. This code allows the debtor to restructure their payments and set up a new payment schedule (usually 3-5 years) that is more manageable. This form of bankruptcy is used when the petitioner has property they want to keep like a mortgage that is about to be foreclosed on and other non-exempt assets that would be liquidated under chapter 7. Filing under this code will halt all collection and foreclosure proceedings and allow the debtor to catch up on their payments and reinstate their original agreement.

Your payments will be made to a Trustee who will disburse them in a manner called for in the court-approved plan. During this time the Trustee will have control over your finances and any credit-related matters will have to be cleared through him.

Consequences

1. Bankruptcy is a civil court proceeding it becomes a matter of public record. In some cases, (chapter 13) your employer can be involved because this chapter requires deductions from you paycheck.

2. Bankruptcy stays on your credit report for up to 10 years and can affect your ability to get a job, establish new credit, get insurance, purchasing a home, or renting a house or apartment. Furthermore, you will have to pay court, filing and attorney fees up front. Bankruptcy is not the ultimate solution that it's portrayed to be.

There is one way to get the financial relief you seek that doesn't involve the hassles of attorneys and repercussions of bankruptcy. Find out what thousands before you have already discovered. Receive a free consultation from a debt consolidation specialist who understands your credit problems!

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