By financen | December 22, 2008 - 6:29 pm - Posted in Bankruptcy

When people are overwhelmed by their existing debt related problems and have no ways to come out of this stress, filing for bankruptcy is considered to be the best option, even though it will severely impact your credit scores. Before filing for bankruptcy, you may consider a debt consolidation or a debt settlement program if one of these programs can solve the debt related problems. If all possible options have failed, then bankruptcy is the most beneficial choice. It’s very important that you get the accurate information regarding the process of filing bankruptcy.

Bankruptcy is decided at a certain point of time while you are deciding to settle the debts with your creditors or while you are incapable to meet the financial obligations. There are different types of bankruptcy and for that reason, it is especially vital to be acquainted with the fine points concerning assorted types and the most beneficial type to select. Filing for bankruptcy has its own set of advantages as well as disadvantages, so the individual should be well aware of his requirements according to his current situation.

Most of the people in debts either file for chapter 7 or chapter 13 bankruptcy. Chapter 7 is acknowledged as insolvency schedule. The assets of the individual are liquidated in this process and the rest of the balance is discharged. You can be free of all your debts within 4 to 5 months. Chapter 7 assists debtors with serious insurmountable debts.

Chapter 13 bankruptcy is another type of bankruptcy where a certain payment plan is worked out with the help of the bankruptcy trustee. This type of bankruptcy is good for those people who want to re-organize their pending debts, with a fixed payment plan over a certain period of time. You will not have to liquidate your assets in this type of bankruptcy. Before you apply for chapter 13, make sure that you have a good source of income so that you can pay off your debts in a payment plan in addition to dealing with the costs. Browse through the internet and you will get adequate knowledge on different types of bankruptcy and ways of filing for it.

This entry was posted on Monday, December 22nd, 2008 at 6:29 pm and is filed under Bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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