Bankruptcy or not?
Bankruptcy has long-term, high-impact effects. Alternatives to bankruptcy are available and should be consideredbankruptcy should be the last resort. Dont let the marketing ploys of a bankruptcy attorney lead you down the wrong path if other alternatives will work for you.
Here are some facts about filing bankruptcy:
- A bankruptcy filing becomes a public record, which could be viewed by creditors or potential employers.
- Creditors may not deny your next credit request, but get used to extremely high interest rates30 percent is not uncommon.
- If creditors are not paid whats owed to them, they can report to the credit bureaus an unfavorable status of your account for seven (Chapter 13) to ten years (Chapter 7).
We will explain the Chapter 7 and 13 types of consumer bankruptcy and discuss alternatives. Learning more about bankruptcy and the alternatives available will help you make a sensible, informed decision that could affect your future tremendously
Chapter 7 and Chapter 13 Bankruptcy
The two types of bankruptcy most often filed by individuals are Chapter 7 (straight bankruptcy) and Chapter 13 (wage-earner plan). Chapter 7 involves selling assets to cover debt to creditors. Chapter 13 is consolidating debt into one low monthly payment taken over a period of time, usually three to five years.
