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The Bankruptcy Shakedown by Consolidate Debt
There comes a time, in most consumers' lives, when they need to make a decision regarding how to handle or deal with an outstanding debt. It is at a time like this when we feel there are no other options apart from declaring bankruptcy. Do not declare bankruptcy until discussing your credit options with a Consolidate Debt or other agency counselor!When you are thinking of declaring bankruptcy, Consolidate Debt says you have two options before you:
Chapter 7 bankruptcy
Chapter 13 bankruptcy
Chapter 7 bankruptcy - When you are declaring bankruptcy of this type, you are asking the courts to discharge all your debts. In exchange “YOU GIVE UP YOUR PERSONAL PROPERTY”. This includes items that are already paid off. There are some debts that CANNOT be discharged (this varies from state to state).
Chapter 13 bankruptcy - allows you to set up a COURT-APPROVED plan to repay your debt, usually over a 3-5 years period. Under Chapter 13 you keep your property and your creditor “TYPICALLY” accepts less than the full amount.
Declaring bankruptcy can be a short term solution, but it can cause CREDIT PROBLEMS FOR THE NEXT 7-10 YEARS, IF NOT LONGER. It will also AFFECT YOUR CREDIT WORTHINESS. No matter how good you’re doing after declaring bankruptcy, every time you apply for a loan or credit you will either be DENIED or subjected to HIGHER THAN USUAL INTEREST RATES. Look into a Consolidate Debt plan or a credit counseling plan first before going into bankruptcy.
