Bankruptcy Information
Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different forms of protection. If you’re facing a financial crisis, a local bankruptcy attorney can help you determine whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be the right answer for you.
Generally speaking, Chapter 7 bankruptcy is intended to wipe the slate clean by discharging unsecured debt—debts like credit card debt, medical bills, and unsecured loans. Chapter 13 bankruptcy, on the other hand, is intended to give a debtor time to catch up past due payments over a period of 3-5 years, while keeping secured property like houses and cars.
Just complete this form & let Bankruptcy.me connect you with a bankruptcy attorney near you.When you get behind with your financial obligations you need to make the right choice when trying to consolidate your debts The first one is to try to contact your creditors and work a payment plan with them. The second one is to contact a debt settlement company which will work on your behalf to lower your debts. A third and more recent option is to use a peer to peer website and try to get a loan.
Trying to work with your creditors on a one one basis is always the first route you should take. This way you keep open lines of communication with them and let them know about your situation. Doing this will improve your chances of having some of your debts lowered or forgiven with a lower interest rate. If this happens then you should feel lucky. Do not get upset if this does not work. There was a contract signed by yourself that you should have known about. Your creditors are in business to make money not lose money.
If that does not work you need to start looking at other options. Its time to call a debt settlement company. They will take a look at all of your debts and let you know which ones they have a chance of lowering for you. They will in turn contact your creditors and start negotiating on your behalf. Many lawyers run these types of companies and are experts in negotiating. They are not free and expect to earn a flat fee or a percent of the amount of debts forgiven. If they succeed in lowering your debts your credit report will show it as so. Be prepared to see a drop in your credit scores but be happy knowing that you are probably going to be paying a lot less back. One of the more successful companies is called Cura Debt.
If you have no luck working with your creditors and the thought of ruining your credit is not going to work for you then a peer to peer lending site might work for you. How these sites work is a group of people come together looking for a place to invest their money. You make a listing of yourself describing what you need the money for. Normal people, not banks, will pool their money back until the amount you are asking for is reached. When the amount is reached the interest rate at which you first listed yourself up for starts going down as people bid against one another. The more bidding means the lower the rate you will pay. After the bidding is done you will be given the money and have to pay it back over a set time period which is usually three years. You make monthly payments back and the people earn the interest rate you are paying them. Every body wins here because you get a low rate loan, no dings on your credit report, and normal people earn money for helping you. Many people enjoy working with the Lending Club for these types of scenarios.
All of these will help you with your debt problems. Some are better than others. Do yourself a favor when its over and never get into debt this bad again.
