Bankruptcy is a federal court process that allows people to eliminate their debts and be protected by the bankruptcy courts. There are two main types of bankruptcy, they are, chapter 7 and chapter 13. Although there are other ‘chapters’ most people do not qualify for these types of bankruptcy proceedings. Chapter 7 and 13, both have rules and guidelines, that you have to follow and both are part of a very time consuming process. Bankruptcy will stay with you for at least seven years. Before going down the bankruptcy road, look at some other options.
Going to a credit counselor, or debt settlement company can be a positive choices over bankruptcy. There are hundreds of agencies that can help you to work with your creditors. When you sign on with a credit counseling group, they will first gather all your information. Then, they will take steps to contact all your creditors and work out deals to lower your payments and balances. When this process is complete they will come back to you with a new low monthly payment. You pay this amount to them and then they parcel out your money to the creditors. Continue Reading…
