Bankruptcy Information
When weighing bankruptcy vs debt settlement, having the required bankruptcy information and knowing the options possible to avoid bankruptcy is essential in making your decision. DebtSettlementProgram.net understands how difficult this time is for you, and can answer all of your bankruptcy questions. Bankruptcy counseling clears up some of the complications in declaring bankruptcy, such as the benefits of Chapter 7 vs Chapter 13, and bankruptcy alternatives.
Asking yourself should I file bankruptcy? Or confused about the different types of bankruptcy filings? Choosing bankruptcy is a difficult choice to make, and any new bankruptcy law tends to complicate it further. But, armed with information, you can not only decide if this is the right avenue for you, but you can choose which bankruptcy type is the best option. It is important to understand the differences. Our bankruptcy advice begins with explaining your options.
Chapter 7
When an individual files for Chapter 7 bankruptcy, they are not choosing a repayment plan as in Chapter 13. Instead, they are filing to have their debt forgiven by the courts and their creditors. The process begins with the debtor filing for bankruptcy with their respective court system. A bankruptcy trustee will be appointed to their case and will oversee the liquidation of any debtor’s assets. The proceeds from selling the debtor’s assets will be utilized to repay any remaining debts, in an order pre-determined by the federal court system. One of the most appealing features of this form of bankruptcy filing is that the debtor is allowed to retain certain exempt property. Each state follows a different set of rules in terms of which property can be retained and the total value of property which is allowed to be retained by the debtor.
An individual debtor, business, or corporation may have the option to file for a Chapter 7 exemption. Each entity must pass the respective means test as outlined by the federal bankruptcy courts. The ultimate goal of this type of filing is to give the debtor a fresh start, or a clean slate in which to build from moving forward. Credit ratings are very severely affected for an extended period of time.
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Chapter 13
A completely different filing option is the Chapter 13 bankruptcy. This type of filing is often referred to as the ‘wage earners plan’ as it appeals to individuals with current income and the ability to repay debts if the total amount owed was to be restructured by the courts. This type of plan can afford the debtor the opportunity to repay all or part of their total debt load. In most cases, the debt repayment plan is 3-5 years or less.
One of the most significant advantages of this filing option is the ability to retain their home, often avoiding foreclosure. Another significant advantage is that the debtor can restructure their debts, allowing them to modify the payment amount and time. Typically, the repayment plan gives the debtor the realistic possibility of total repayment, whereas their current direction would result in a complete discharge of their debt under a Chapter 7 filing. As the case with Chapter 7, credit ratings will be heavily impacted for an extended period of time
Each type of bankruptcy filing offers features and benefits in which a debtor should consider prior to filing. And as always, debtors should explore any and all alternatives before resorting to either type of bankruptcy filing, such as a debt settlement program or other bankruptcy alternatives.
It can be hard to trust your circumstance to online bankruptcy help, but DebtSettlementProgram.net can offer the bankruptcy advice and answer your bankruptcy questions to help you choose the best option, which is often to enter into a debt settlement program instead. Declaring bankruptcy is not only emotionally difficult, but legally complicated. When deciding between bankruptcy vs debt settlement, the right bankruptcy information and knowing if you can avoid bankruptcy is essential in finding the right solution.
Debt Settlement Program is a Credit Card Debt Reduction company offering a Debt Settlement Program to Eliminate Credit Debt and Credit Debt Advice to assist you in paying off your debt.
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