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Avoid Bankruptcy

 

Bankruptcy filings are growing every year. Most bankruptcies are forced by aggressive creditors and collectors that scare the average consumer to seeking protection from the government.

Many bankruptcy can be prevented. Our goal is to inform and educate consumers so that they are aware that bankruptcy is the very last option. There are several other debt eliminating and debt reduction options.

One hidden unknown about bankruptcy is that you have to openly admit that you have filed Bankruptcy for the rest of your life. Businesses and financial institutions can easily find your Bankruptcy by searching the Internet for court records. Filing a Bankruptcy may mean looking at higher interest rates for the rest of your life.

 

Two types of consumer bankruptcy, chapter 7 and chapter 13

 

Bankruptcy Chapter 7

Chapter 7 is the most common type of filing. This is most common because most debts are written off and do not have to be paid back.

Bankruptcy Chapter 7 has all the same stigmas as Bankruptcy Chapter 13 but have loss of privacy, ten year impact on credit history, higher interest rates.

Bankruptcy Chapter 7 is recommended for people that have no choice. There are people that can barely afford to put food on the table and keep the lights on and have substantial amount of debt. This is a good time to think about Bankruptcy Chapter 7. You will not lose everything. Every state has its own requirements of what you will be able to keep and what you will loss.

When you file Bankruptcy Chapter 7 you have tp go before your state court asking the judge for a supervised liquidation of your assets to pay your creditors. Each state has its own requirements of what can be Exempt.

Most people who file Bankruptcy Chapter 7 have nothing but Exempt Property. There is nothing to liquidate and therefore nothing to pay to the creditors. The creditor accounts are then discharged by the judge. Leaving you with very little or no debt.

 

 

Bankruptcy Chapter 13

Chapter 13 is very similar to credit counseling, supervised by the courts. When you file Bankruptcy Chapter 13 you are going before your state court. You ask the judge for protection from your creditors and collectors. Chapter 13 requires the full amount of the debt is paid off with government supervision over a three to five year period.

If you file Bankruptcy Chapter 13 you are going before your state court and asking the judge for protection from your creditors and collectors. In a Chapter 13 the full amount of the debt is paid off with government supervision over a three to five year period. ost of the debt will have to be paid back by the borrower. Typically any fees, finance charges and interest are eliminated.

People that have a substantial amount of debt and can afford to pay it off in three to five years should not file for Bankruptcy Chapter 13.

 

 

Bankruptcy Chapter 11

Chapter 11 bankruptcy is for businesses in debt. If a company declares bankruptcy under Chapter 11, it will attempt to reorganize. In that case, management may continue to run the day-to-day business operations, although the bankruptcy court must approve all significant business decisions. If the company ultimately succeeds in reorganizing, you may be able to exchange your old stocks or bonds for stocks or bonds in the new company. But the new securities may be worth less than your original investment -- or the bankruptcy court may determine that stockholders don't get anything because the debtor is insolvent.

A company also can file for bankruptcy under Chapter 7 if it intends to stop all operations and go completely out of business. The bankruptcy court will then appoint a trustee to liquidate the company's assets to pay off the debt, which may include debts to creditors and investors.

 

 

Bankruptcy can be avoided

Bankruptcy is your last debt reduction option. You have other options that can reduce your debt.

Sign Up for Debt Consolidation Here!

 

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