Save thousands of dollars on interest rates Reduce overall debt and high interest rates Put an end to creditor harassment Rebuild your financial Future Cut payments by up to 70% Avoid bankruptcy Quick approval Strictly confidential |
Financially Stressed? Needing Help in Consolidating your Debts? |
 |
|
|
Filing for Bankrupcty - Chapter 13 and 7 Differences |
|
|
|
Information Debt Consolidation Consolidate vs Loan Potential Problems Benefits Other Debt Options Debt Settlement Credit Counseling Consolidated Loan Title Loan Repaying Loans Loan Consolidation Loan Deferment Loan Forbearance Lesson 1 Finding the Source Tracking Money Income Sources Expenses Who You Owe Make a Budget Lesson 2 Mental Model Report Errors Legal Rights Stick to Budget Lesson 3 Debt Free Tips 50 Ways to Save Money Management Paying for College 401k Plans FAQ Directory Resources Articles Debt Calculator How to Refinance Your Mortgage |
Bookmark |
Debt10.com |
Home Contact |
© 2007 Debt10.com Debt Consolidation |
Disclaimer: This site provides general guidance and information. It is not intended
as, nor should it be taken to be, legal, financial or other professional
advice for your situation. Please consult with your attorney or financial advisor
to discuss any legal or financial issues involved with credit decisions.
|
Bankruptcy has long been an option for those struggling
with their debts. Although not always the best option, it did serve a purpose for
many. Now there has been some new bankruptcy laws have been put in place. What
you should know about these and what it will mean to those considering bankruptcy.
Here is a basic summary. There are 2 basic types of bankruptcy, Chapter 13 and Chapter 7. Chapter 13 essentially helps the debtor repay some or all of their debts owing. How does this sound like bankruptcy you ask? Well, with Chapter 13, it allows someone with a house to save it from foreclosure. Albeit they still need to continue making those mortgage payments. Chapter 13 bankruptcy has similarities with a debt consolidation loan too in that it they can make payments to a Bankruptcy trustee who then pays off their creditors. Chapter 7 on the other hand is the most often chosen. If you declare Chapter 7 bankruptcy your debts are gone, but good luck obtaining credit for several years to come. So what do the new bankruptcy rules mean? For one, people determined to have higher incomes will not be eligible to file for Chapter 7. This is figured out by comparing your monthly income to the average income of someone with your household size in your same state. If you make more than what most do, you will have to jump through more loops in order to be allowed to file for Chapter 7. The idea here is to get people who have the money to file for Chapter 13 instead of Chapter 7 thus paying some or all of the debts back. Chapter 13 filers will also have higher amounts of their disposable income to dish out as well. In order for you to file for Bankruptcy of either kind you will also be required to do some credit counseling. Although you don't have to necessarily go along with what they advice, the purpose is that it might help out some and educate them on how to better handle their finances. It may even be obvious that you could only file for Chapter 7 but you still have to go through it. And as a result of the new Bankruptcy rules it becomes more expensive for lawyers to take on bankruptcy cases since there are more hoops to jump though. |