All About Bankruptcy

As of 2005, the guidelines for filing for bankruptcy have changed. More restrictions have been put in place, limiting the number of debtors that will actually qualify for bankruptcy. Chapter 7 bankruptcy is a way for you to do away with most unsecured debt, but it is now much harder to obtain. One of the newer stipulations is that you must seek debt resolution advisement before you can qualify for bankruptcy. This is done through Consumer Credit Counseling Services; a series of agencies usually backed by credit card companies. These agencies will analyze your finances and perhaps negotiate a lower minimum payment or a lower interest rate.

Once you complete the task of qualifying for bankruptcy, which can be time consuming considering the mandates you must follow beforehand, the actual process of bankruptcy should take approximately four months. What many people don’t realize is that it actually costs money to file for bankruptcy. Although it is certainly absurd that you have to pay for a procedure for which you qualify only because you are in such extreme financial straits, you should expect to shovel out anywhere between $1200 to $1500.

Although bankruptcy can sweep most, if not all, of your unsecured debt under the rug, debtors should be wary of the fact that bankruptcy isn’t necessary the perfect fix-all for debt. Bankruptcy will be like a scarlet letter on your credit report. Having declared bankruptcy can affect you for the following seven to ten years, acting as a hindrance when you search for a job, apply for credit or attempt to secure housing. Bankruptcy is a last resort, and you should carefully contemplate whether or not having bankruptcy on your public record is really worth becoming debt free.

Debt Settlement is a Better Option

If you want to eliminate your unsecured debt, yet aren’t willing to go to the extent of filing for bankruptcy, then debt settlement is the best option for you. Our debt settlement program begins by filling out our no obligation debt settlement form. Our debt settlement program will enable you to become completely debt free in only 12 to 36 months. Your personal debt settlement coach will negotiate with your creditors, convincing them to accept a payment in full that is usually 50% or less than the amount you actually owe. During the debt settlement process you will stop making payments to your creditors. Instead you will pay just one low monthly payment, which is usually less than the minimum payment on one of your bills.

Although debt settlement may take a little longer than bankruptcy, the time is well spent, because you will not suffer any harsh repercussions. Debt settlement may slightly affect your credit score, but it will not be nearly as detrimental as the black mark of bankruptcy on your credit report. Debt settlement is a great alternative to bankruptcy, so please take the time to Fill out our free, no obligation debt settlement form before filing for bankruptcy. Let us show you the best way to become debt free.