Common Types
There are two common forms of bankruptcy that consumers
may file for. The first being Chapter 7, or a complete
liquidation of all of your debts. The second being Chapter
13, or restructured debt proceeding. Both forms have
become more difficult to file because of laws introduced
in 2005.
Chapter 7
Typically, anyone who files for Chapter 7 bankruptcy
will go through a liquidation proceeding. The debtor
will turn over all non-exempt property to a bankruptcy
trustee, who converts the non-exempt property to cash
for distribution to the creditors. Usually within 5 months
after filing a Chapter 7 bankruptcy, the debtor will
receive a discharge of all dischargeable debts.
Non-exempt properties, and limits on the exemptions
will vary from state to state. However, most states have
taken measures to sufficiently protect the consumer and
their assets.
The following debts do not qualify for discharge under
Chapter 7:
-Child Support
-Alimony
-Student Loans (There are exceptions)
-Varying types of municipal/government/state fines,
and court ordered repayments.
Chapter 13
Chapter 13 is also known as debt reorganization. The
debtor will pay back creditors through a monthly “payment
plan” handled by a bankruptcy trustee. Generally,
the duration of the plan ranges from 3 to 5 years. This
form of bankruptcy is very different from Chapter 7,
in that large amounts of the debt are still payable by
the debtor.
There are caps on the amount of unsecured and secured
debt a debtor may have under this form of bankruptcy.
Also, the debtor must have a regular income and a stable
job to qualify.
This form of bankruptcy typically benefits those debtors
who are interested in preserving different assets/properties
that otherwise may be lost through the discharge proceedings
in Chapter 7.
Lasting Effects and Consequences:
While filing for bankruptcy may seem like the quick
fix, it doesn’t come without its negative consequences.
Filing for bankruptcy will leave a derogatory notation
on your credit report for up to 10 years. While this
notation is on your credit report, you could be prevented
from getting credit, insurance, a job, an apartment and
more. If you are interested in taking care of your debts,
and you looking for an alternative to bankruptcy, give
Financira a call at
1-866-987-3328.
Alternative to Bankruptcy
Debt settlement, also known as Debt Negotiation, is
one of the most viable approaches to resolving overwhelming
debt, especially for individuals considering bankruptcy.
At Financira, we understand the stress and struggle
associated with handling an overwhelming amount of debt,
and our goal is to reduce your debt so that you can get
on the path to financial freedom, and live a debt free
life! If you're simply paying minimum monthly payments,
or are already behind, then surely it feels like you
are just treading water or, getting nowhere.
Our program, through negotiation, will reduce your debt
down to a fraction of what you currently owe. So, you
only end up paying back a fraction of the debt to the
creditor! Our program is custom-tailored for each individual’s
current financial situation in order to make the process
as quick and affordable as possible.
Most settlement and negotiation programs work with individuals
who have qualifying hardships. Qualifying hardships could
include; loss of a job, drop in income, divorce, disability,
personal injury, serious illness, inability to meet monthly
minimums, and more. Unfortunately, these are all conditions
which plague many Americans in their daily lives.
Generally, debt settlement is both the fastest and least
expensive option for a person to pursue. People who choose
debt settlement can settle their debts relatively quickly.
For more information, complete our online form, or contact
us via telephone or email for a free financial evaluation.
There is no obligation or cost. Call Today! 1-866-987-3328
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