Filing for bankruptcy is often a highly personal judgment call. For some, declaring bankruptcy is an
unfortunate but realistic choice. However, many have sought debt relief, seeking
a fresh start, only to discover serious and negative long-term consequences arising from the decision to file for personal
bankruptcy. Generally, if you have:
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A short time until retirement
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More than a few dependents
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A large debt obligations
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A small amount of savings
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A large amount amount of non-dischargeable debt
...the more
it becomes likely that bankruptcy is a valid option.
Chapter 7 bankruptcy
liquidates assets and uses them to pay creditors according to which have
precedence in the Bankruptcy Code. It is the quickest, simplest and the most
frequently selected kind of bankruptcy filing and you are absolved of most
unsecured debts within 3-6 months of filing. Certain debts cannot be waived by
Chapter 7 bankruptcy such as child support, student loans, drunk driving fines
and others. When filing bankruptcy forms, you must disclose the following
personal financial information to the courts:
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Income, property and assets
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Debts and liabilities
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Living expenses
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Any exempt assets or property (Bankruptcy Code)
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All property transactions for the prior two years
Chapter 13 bankruptcy, on
the other hand, is a repayment plan in which the court binds the debtor and the
creditors to terms of repayment. The debtor retains property and makes
regular payments to a trustee out of future income to pay creditors over the
life of the bankruptcy plan.
When filing bankruptcy under Chapter 13, you commit to partially paying off your creditors over a 3 to
5 year period but the bankruptcy may remain on your credit report for up to 10
years after you make your last payment, ruining your chances to get the credit
necessary for the purchase of a home or business. Bankruptcy also can be
reported for life if you apply for a job or life insurance. Agonized regrets
over "what might have been" are too often the ultimate reward of
filing bankruptcy.
If your debts are mostly
unsecured, debt consolidation makes more sense thanfiling for bankruptcy. A
debt consolidation plan will create a budget for your realistic monthly living
expenses. With the money available each month after paying these expenses, We
will negotiate a repayment plan for you that may include a reduced
or even zero interest rate
Our clients, in most
cases, are able to get out of debt in 3
to 5 years. This alternative is greatly
preferable to suffering needlessly through court mandated creditor payments,
years of bad credit ratings and denied business and financial opportunities
which can result from bankruptcy.
United Consolidation Consultants and Debt Management Services
For your information we have included a link to the:
THE
FAIR DEBT COLLECTION PRACTICES ACT
Please fill out your information for your free Debt Consolidation quote.
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