Of all the different methods you can use to get out of debt, debt consolidation and bankruptcy are the ones people are most familiar with. There is also debt settlement but that is for another article. In this article learn how to decide between using debt consolidation or bankruptcy to pay off your debts.
The biggest problem with bankruptcy is that not everyone qualifies for the best form of bankruptcy which is Chapter 7. Chapter 7 involves full liquidation of your debts. You do not have to pay back your outstanding balances with Chapter 7. If you talk to a lawyer and you can qualify for Chapter 7 and you have no other options than this would be the way to go.
San Diego Bankruptcy Attorney, Minnesota Bankruptcy Lawyer, Bankruptcy Options,
On the other hand, if you cannot qualify for Chapter 7 and you are required to use Chapter 13 bankruptcy then you should really think twice. The benefits of Chapter 13 are significantly smaller. Your debts are not discharged. You have to repay them back at a certain percentage with a payment plan that can extend up to five years or more. Plus your credit is ruined for at least 7 to 10 years. And it is a matter of public record.
Debt consolidation allows you to consolidate all your outstanding unsecured debts into one low monthly payment that you can afford and be debt free in approximately 3 to 4 years on average. Your success will depend on your ability to keep up with your monthly payment arrangement. When you fall behind our credit card bills your credit card companies will encourage you to seek out a debt management plan or credit counseling. They don't want you going into bankruptcy any more than you do.
Between bankruptcy and debt consolidation, debt consolidation is the lesser of two evils. The effects on your credit are negative but not for as long a period as bankruptcy. Debt consolidation can cost you less in fees than bankruptcy. And it is not a matter of public record. Hopefully, this has helped clarify which debt solution will help you get out of debt.
Bankruptcy Lawyers In Knoxville TN
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Lawyers In Knoxville TN
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment