Are you in a financial bind? Perhaps it seems like there are more bills than money each month. Maybe a recent illness is causing problems. You may be out of work. There are many things that can happen that are out of your control, hence you might be checking into bankruptcy preference issues. There are many options to consider before taking serious action. Here are things to look at.
There are two types of serious actions to take. One is a Chapter 7. The other is a Chapter 13. These decisions may end your debt problems. However, they have a hefty price.
Chapter 7 Bankruptcy
If you decide to file a chapter 7, your financial matters will be handled by a trustee assigned to your case. You are declaring that you are bankrupt. These are also known as liquidation bankruptcies. Everything is sold or given up, to help satisfy your debts. Depending on where you live, you may be able to keep certain things.
Some personal property and one vehicle are usually allowed. You might keep your home or there is a possibility that you will lose it. A Chapter 7 will stay on your financial record for as long as ten years. You will have a hard time obtaining credit in the future.
Chapter 13 Bankruptcy
Chapter 13 bankruptcies are also known as restructuring plans. You agree to pay back your debts in a specified time. There is no liquidation. However, it is still a large black mark on your credit report.
There is a way to solve your financial woes without resorting to bankruptcies. You can hire a debt settlement agency. They will negotiate with your creditors, and in some cases, you will pay considerably less than you owe.
You may owe a lot of money in credit card debt. Perhaps you have large medical bills. A settlement agency can negotiate these types of bills for you. Often times, the creditor will agree to settle your debt for less than half the original amount.
Debt settlement cannot negotiate secured loans like home mortgages. Auto loans, and student loans cannot be settled this way either. However, unsecured loans make up a large percent of personal debt.
Many debt settlement professionals have a working relationship with creditors. They deal with them every day. They will be in a better position to settle debt, than you. There will be no bankruptcies on your credit report, either. This will also help you to avoid possible lawsuits. Debts will be settled and your credit rating can begin to improve.
Are you checking out your bankruptcy preference matters? Make sure you know the disadvantages and the high price they come with. You can avoid these black marks on your credit. A debt settlement agency can negotiate many of your bills. You may pay only a percentage of what you actually owe. Your credit rating can begin to improve immediately.
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