Before You File Chapter 13 Read This
by Norman WilsonBeaten down by debt and are considering filing for bankruptcy, you must know you have another alternative. This article will debate the differences of debt settlement vs bankruptcy and how you can find out which option is the the best for you.
Bankruptcy is a legal process that offers deliverance to customers destroyed by unnecessary debt by discharging their fiscal needs. Depending on the type of bankruptcy you qualify for, you will either be freed from all your debts (chapter 7) or ordered to pay some or all of them ( chapter thirteen ) over a period of 5 years.
You can see what sort of bankruptcy you qualify for by reading this bankruptcy code which can be found in the net, but unless you are familiar with complicated legal language, you'll be better off reading a good book on the topic. Moreover it is to your benefit to consult a bankruptcy lawyer, this way your questions will be answered by an expert in the field. You also need to expect to pay at least filing and attorney's costs. The record of your filing will stay with you for 10 years and it's an official record, thus your privacy will also be compromised.
Debt settlement, often referred to as debt negotiation, needs dealing with creditors to accept fifty percent or less of the sum owing. With debt negotiation you have 2 options : hire a debt settlement company and be prepared to pay at least 15% of your total debt or do your own dealing with assistance from a reputable training course and pay a tiny fraction of what you would pay a debt settlement firm.
Unlike bankruptcy, debt settlement isn't a matter of public record and negative information stays in your credit history for at least 7 years, but you can reconstruct your credit in 1 to 2 years, the payments are flexible and are under the control of you, not by the court. The length of chapter 13 is 5 years with fixed payments dictated by the court, the length of a debt settlement program, depending on your monthly budget and other monetary factors, is from six months to three years.
As you can see, these are just the main differences between debt settlement vs bankruptcy. However if you prefer to go with debt negotiation, is best to find out more details about the do it yourself approach and the debt settlement firm. Hopefully, this can help you in your search to dump your debt and make a final decision as to what program is best for your particular situation.
Before filing for bankruptcy go to Arc Financial to get more information on eliminate credit debt and credit debt management today!
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Before filing for bankruptcy go to Arc Financial to get more information on eliminate credit debt and credit debt management today!
Article submitted Thursday, June 11, 2009 & read 7 times.
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