New here? Start with these articles to learn about US bankruptcy, debtor bankruptcy
alternatives like debt consolidation, debt settlement, debt negotiation, and debt management.
You'll also learn the causes of debts that can lead you to file bankruptcy and how to recover
from it.Bankruptcy - How to Make the Right Choice
Personal bankruptcy offers two chapters, chapter 7 and 13. The big change the credit card companies pushed for and got was income limitations. If you are above the median income level you have no choice, you have to file chapter 13. Your credit score will be adversely affected and you cannot file for bankruptcy for another 8 years. Also consider this, if bankruptcy is your choice make all your moves where credit is a factor before you file. Information is your friend.
How do you know Bankruptcy is right for you? Has the economy turned you situation around so fast that bankruptcy is an option. If you are considering bankruptcy you need to know what changes were implemented a few years ago and how this affects you. You may not have considered other options available to you that lenders are offering these days. Personal bankruptcy offers two chapters, chapter 7 and 13. If you are considering this you have probably read a slew of information, but the basic differences are chapter 7 is a total dismal of debt while chapter 13 is a 3-5 year reduced repayment program. At the end of the term your outstanding debt is dismissed.
The big change the credit card companies pushed for and got was income limitations. It’s clear cut, to file chapter 7 you have to be below the median income level established for each state. This differs per number in the household. If you are above the median income level you have no choice, you have to file chapter 13.
Your credit score will be adversely affected and you cannot file for bankruptcy for another 8 years. Also consider this, if bankruptcy is your choice make all your moves where credit is a factor before you file. Such as having to move to an apartment or changing car insurance where credit scores are used.
Once your score is lowered it will be difficult for a period of time to get certain things dependent on your credit score.
What complicates the issue is if you have a house, cars, boats or other things of value. If you are at this point debt can become a emotional issue, having a 3rd party to discuss this with is a good idea. Consultations are FREE and go to 3 or 4 lawyer and get the feel for the process.
Information is your friend, for more information about Debt Options visit the Debt Hub. You Do have choices.
Get as much information from articles, ads and any resource you can. The Debt Hub and it’s sponsors welcome you to read all you can. This will guide you to the right choice for You.
About the Author:
Ric Bai is the founder of the Debt Hub. Read the articles, ads and resources before you make your choices.
Ric Bai | Bankruptcy Basics |
Tags: bankruptcy process
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