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Are you Considering Filing Bankruptcy to Eliminate Your Debt?

Learn more about the Bankruptcy Laws Related to Debt 

There are good reasons for consumers to consider filing for bankruptcy. There are also
conditions where bankruptcy will have to be ruled out by those in a financial
bind.

Changes made in U.S. bankruptcy law that went into effect on October 17,
2005 have, for many, taken away the prospect of a fresh start. The new
bankruptcy filing laws make it tougher for individuals to qualify for discharge
of their debt through a Chapter 7 bankruptcy filing. If you are in extreme financial
hardship, with limited assets and income, and need relief from creditors,
you would want to consider a free consultation with a bankruptcy attorney.

This is over-simplified, but:

For those that have income that exceeds the means test for your state and whose monthly expenses leave a few hundred dollars left over each month (not actual expenses, but what the IRS says are allowable expenses), were you to file bankruptcy, you would have to enter into Chapter 13. This would require you to pay creditors for usually 3-5 years and pay anywhere from 25% all the way up to 100% of each individual debt, depending on your circumstances.

Compare filing bankruptcy alongside negotiating your debt with creditors:

Bankruptcy:

• The court is in control. The court determines your living expenses, not you.
• Bankruptcy remains on your credit for 10 years. It may effect you even longer for certain employment and loan qualifications.
• Bankruptcy takes a standard 5 years to complete.
• The court can protect you from lawsuits.
• Bankruptcy is made public.
• You must participate in a court approved credit counseling program for 6 months prior to filing a Chapter 7 Bankruptcy.
• Creditors can expect to see 25% to 50% of original balances over a 5 year period.

Negotiating debt with your creditors:

• You are in control. You determine your living expenses.
• Negative items can remain on your credit report for 7 years, although you can be back on track with credit options in as little as a year, depending on ability to pay reduced settlements.
• You control how quickly you are rid of the debts.
• You can still be sued, but can negotiate these debts out of court.
• You can negotiate your debts, on average, to between 30%-50% of balance.
• Your debt settlements are a private matter.

Filing for Bankruptcy is not the best option available to the majority of consumers. Indeed, filing bankruptcy should only be considered as an absolute last resort. Each of you reading this has different circumstances. Each of you would have unique and separate goals. It is especially important to consider all of your options before taking action when, ultimately, that action may affect you many years from now.

Contact a bankruptcy attorney in your area that specializes in Bankruptcy for more information and a free consultation. On average, you can expect to pay $1,500.00 for legal fees and court costs.

Start Eliminating Your Debt Today:

Call us toll-free today at 1-800-939-8357 to start your debt settlement and negotiation program or click here to use our contact form.