Debt Elimination Companies May Really Be Offering Chapter 13 Or Chapter 7!

Personal bankruptcys and debt elimination without bankruptcy facts, How to find expert attorneys. Free information and legal reviews! Debt got you down? You’re not alone.

Consumer debt is at an all time high. What’s more, record numbers of consumers nearly 2.6 million in 2008 have filed.

In your attempt to get solvent, be on the alert for advertisements that offer seemingly quick fixes.

And although bankruptcys may be one option to deal with financial problems, it’s generally considered the option of last resort.

The reason, its long term negative impact on your credit worthiness. It stays on your credit report for 10 years, and can hinder your ability to get credit, a job, insurance, or even a place to live.

The Federal Trade Commission cautions consumers to read between the lines when faced with ads in newspapers, magazines or even telephone directories that say:

  • Consolidate your bills into one monthly payment without borrowing.
  • STOP credit harassment, foreclosures, repossessions, tax levies, and garnishments
  • Keep Your Property!
  • Wipe out your bills!
  • Consolidate your bills!
  • How? By using the protection and assistance provided by federal law. For once, let the law work for you!

You’ll find out later that such phrases often involve personal bankruptcys proceedings.

Which can hurt your credit and cost you in attorney fees. If you’re having trouble paying your bills, consider these possibilities before considering filing for any of the different bankruptcys types.

Talk with your creditors. They may be willing to work out a modified payment plan. You may also want to consider a online debt consolidation program.

Contact a credit counseling service. These organizations work with you and your creditors to develop a repayment plan.

Such plans require you to deposit money each month with the counseling service. The service then pays your creditors. Some nonprofit organizations charge little or nothing for their services.

Carefully consider a second mortgage or home equity line of credit. While these loan may allow you to consolidate your bills, they also require your home as collateral.

If none of these options is possible, Learn how to file bankruptcy because one of these may be the likely alternative. There are two primary types: Chapter 13 and Chapter 7.

Each must be filed in federal court. The current filing fees are $185 for Chapter 13 and $200 for Chapter 7. Attorney fees are additional and can vary widely. The consequences are significant and require careful consideration.

Chapter 13 bankruptcys allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather than surrender any property.

Chapter 7 bankruptcys, involves liquidating all assets that are not exempt. Exempt property may include cars, work related tools and basic household furnishings. Some property may be sold by a court appointed official a trustee or turned over to creditors. You can receive a discharge of your debts under Chapter 7 only once every six years.

Both types of bankruptcys may get rid of unsecured debts!

And stop foreclosures, repossessions, garnishments, utility shutoff's, and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary.

They usually do not erase child support, alimony, fines, taxes, and some student loan obligations.

Also, unless you have an acceptable plan to catch up on your bills under Chapter 13, it usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.

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