Bankruptcy Questions
Financial hardship is something that effects many Americans that are trying to start afresh with their Finances
Sometimes the only solution to their financial situation is to declare themselves bankrupt in order that they may once again have the opportunity to start afresh.
There are other choices available that one should carefully contemplate first before taking that severe step towards declaring oneself insolvent.
One solution is debt consolidation which briefly means that instead of having many debts to be paid out to assorted creditors you are able to use by means of a consolidation loan one account which could be used to pay them back.
Lower interest rates and greater control over your finances are some of the advantages
To qualify for a debt consolidation loan you need to firstly investigate to see if you are eligible
If the above does not work for you another possible means of avoiding bankruptcy is to seek help from a qualified credit counselor.
These counselors are often able to organize with you that you pay them a specific amount monthly and that they in turn will make a payment to each of your creditors.
The amount you owe your creditors can sometimes be reduced by using a counselor instead of dealing with the creditors directly. The councilors also ensure prompt payments to the creditors monthly.
One can often get an extension of up to five years on paying back your debt and thus minimizing your financial hardship. Speak to your financial counselor to see if this is achievable for you.
If you meet certain criteria a credit counselor can assist you to evade bankruptcy by setting up a financial plan
If neither of the above mentioned options work for you the only remaining solution you have is to apply for bankruptcy.
Being able to pay off some or all of the money outstanding to creditors over a period of time is known as Chapter 13 bankruptcy
Chapter 7 bankruptcy is more severe as it requires all possessions which an individual owns to be liquidated to repay as much off debt as achievable to creditors.
Obtaining credit after declaring oneself bankrupt is very hard for an individual.
If you are considering filing for bankruptcy it is important to consult a bankruptcy lawyer first
Chapter 13 bankruptcy can only be discharged after credit counseling is sought from a non-profit credit counseling agency that has to be registered with the federal bankruptcy reform of 2005.
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Tags: Bankruptcy Questions, Chapter 13 bankruptcy, Chapter 7 Bankruptcy, filing for bankruptcy
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