There are as many motivations for declaring bankruptcy as there are filers, and your unique reasons might dictate your choice in the type of bankruptcy you choose to file. There are two basic types of bankruptcy available and they are both named after the bankruptcy code number. Chapter 7 and chapter 13 bankruptcies are very different in nearly every area and it pays to understand a bit about each before you make your decision.
One of the most difficult times in life may involve not having enough money. You're sure to endure some financial challenges over time, and working to get out of this situation can be tough. However, filing for the legal status of Chapter 7 bankruptcy may be the way to get the best assistance. Doing so may allow many of your debts to be paid off if you qualify. However, it's important to know specific things about this type of legal filing if you wish to have success.
If you are in debt and are trying to find the fastest way out, you might consider Chapter 7 bankruptcy. Choosing this option will offer relief for you if you have the right types of debts, but it will also cost you money to hire a lawyer. If you want to save money, you could file alone; however, this is not recommended. Filing for Chapter 7 is complex and is not a good idea to do on your own, and here are some of the reasons for this.
Debt consolidation refers to the process of taking out one large, singular loan to pay off all your existing debt at a single, steady interest rate. For many people in significant amounts of debt, consolidation can be a great option for getting debts paid off in a reasonable time frame while also saving money on interest down the road. Before you get involved in just any debt consolidation program, however, there are some common mistakes you'll want to be aware of and avoid at all costs.
While a bankruptcy filing can bring welcome relief from most all consumer debt, there are a few specific categories of debts that will remain after your paperwork is filed. With bankruptcy being such an important decision, it's vital to understand the full ramifications of the that action. If you have a relationship to any of the debt categories below, you might need to take actions outside of bankruptcy to deal with it.