Bankruptcy

Many credit card uses think that bankruptcy may be the only option available to get the debt relief they are looking for. And, some think that bankruptcy is the "get out of jail" free card - completely absolving them from debt. Well, times have changed and filing for bankruptcy has become harder, more expensive and more intrusive.

The two common filings for bankruptcy are Chapter 7 and Chapter 13. The most sought out filing is Chapter 7 since this one absolves consumers of all unsecured debt, primarily credit card debt. However, due to Federal changes, obtaining Chapter 7 is more difficult.

Consumers must hire a bankruptcy lawyer, attend a federally mandated credit counseling seminar and have all finances and income reviewed. After that, a determination for Chapter 7 is decided. If the consumer does not meet Chapter 7, he/she can file for Chapter 13.

Chapter 13 bankruptcy incurs all the same benefits of Chapter 7 save one - the consumer is enrolled into a debt management program and can apply for a personal loan to pay off the unsecured debt. Consumers also have the filing reported to the credit bureaus.

If you would like some alternatives to bankruptcy, call us at 1-800-562-6737 or complete the form to your left to get a free debt consultation with a senior debt specialist. There are options for paying off debt that can be more effective than bankruptcy.