Filing a bankruptcy petition is a horrific experience for many people. Consumers often have a hard time coming to terms with debt problems and financial challenges. Unfortunately, these problems can never be wished away. They have to be tackled head on. At times declaring bankruptcy may be the most suitable solution. Since the average consumer may not have enough information about this option getting bankruptcy advice online may be a good idea.
When getting advice online or offline, the adviser will take you through all your options. There are generally two methods that you may be able to use to get rid of your debt. These are chapters 13 and 7. They both have different requirements, benefits and drawbacks. The adviser should be able to take you through all the details and help you to make an informed decision.
Being bankrupt has some advantages. For instance, it will stop creditors from harassing you. Bankruptcies also help debtors get peace of mind because any communication from creditors will be halted. This option effectively gives debtors immunity from any legal action that financial institutions and collection agencies may want to take. If used wisely, bankruptcies can give consumers a fresh lease of life.
Chapter 7 is, without a doubt, the most popular debt settlement option. It entails auctioning of the property belonging to a debtor to recover funds for repaying part of the outstanding debt. It is only suitable for individuals who have no source of income whatsoever. Usually, an impartial trustee is chosen to oversee the process.
Chapter 13 is very convenient since there is no auctioning of property. Usually, debtors are required to come up with an acceptable payment plan to offset the debt. To qualify for Chapter 13, the debtor needs to have a reliable source of income. When financial institutions want to repossess or foreclose on property, this chapter will effectively put a stop to their actions. The drawback of this option is that liquidation of assets will take place the moment the debtor fails to honor his or her obligations as indicated on the payment plan.
A professional adviser will be objective when outlining the pros and cons of all the available debt settlement options. He or she will also list the types of debts that can be written off as well as those that must be settled. The effects of bankruptcies on credit scores will also be highlighted by a professional. This information will prepare the debtor well to deal with the consequences of being bankrupt.
All a person needs to do to get legal protection from creditors and financial institutions is file a petition in court. Those who do not know how to prepare and file this type of document can hire a professional to offer assistance. This can be: an attorney, who has experience handling similar cases; or a professional tax preparer.
All taxpayers are entitled to use this debt settlement option. Unfortunately, this method is often misused by some irresponsible taxpayers. For this reason, a trustee is often appointed to determine who is eligible for this legal process. The trustee also helps the court in identifying whether the petitioner has applied for the appropriate chapter.
When getting advice online or offline, the adviser will take you through all your options. There are generally two methods that you may be able to use to get rid of your debt. These are chapters 13 and 7. They both have different requirements, benefits and drawbacks. The adviser should be able to take you through all the details and help you to make an informed decision.
Being bankrupt has some advantages. For instance, it will stop creditors from harassing you. Bankruptcies also help debtors get peace of mind because any communication from creditors will be halted. This option effectively gives debtors immunity from any legal action that financial institutions and collection agencies may want to take. If used wisely, bankruptcies can give consumers a fresh lease of life.
Chapter 7 is, without a doubt, the most popular debt settlement option. It entails auctioning of the property belonging to a debtor to recover funds for repaying part of the outstanding debt. It is only suitable for individuals who have no source of income whatsoever. Usually, an impartial trustee is chosen to oversee the process.
Chapter 13 is very convenient since there is no auctioning of property. Usually, debtors are required to come up with an acceptable payment plan to offset the debt. To qualify for Chapter 13, the debtor needs to have a reliable source of income. When financial institutions want to repossess or foreclose on property, this chapter will effectively put a stop to their actions. The drawback of this option is that liquidation of assets will take place the moment the debtor fails to honor his or her obligations as indicated on the payment plan.
A professional adviser will be objective when outlining the pros and cons of all the available debt settlement options. He or she will also list the types of debts that can be written off as well as those that must be settled. The effects of bankruptcies on credit scores will also be highlighted by a professional. This information will prepare the debtor well to deal with the consequences of being bankrupt.
All a person needs to do to get legal protection from creditors and financial institutions is file a petition in court. Those who do not know how to prepare and file this type of document can hire a professional to offer assistance. This can be: an attorney, who has experience handling similar cases; or a professional tax preparer.
All taxpayers are entitled to use this debt settlement option. Unfortunately, this method is often misused by some irresponsible taxpayers. For this reason, a trustee is often appointed to determine who is eligible for this legal process. The trustee also helps the court in identifying whether the petitioner has applied for the appropriate chapter.
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