Men of wisdom always think before they leap. And more so
when you deal with a sensitive issue like the silver tonic
called money. Money brings you power, money makes you self
confident, money delivers you happiness and it is indeed money
that makes this world go round. We are sure that you would not
like to take up certain plans which will give you the title of
a bankrupt or make a bigger hole in your pocket.
When debt burdens are suffocating and you are in deep
waters, the process of bankruptcy comes at your rescue,
but with a lot of conditions. With a legal separation from the
bondage of your partial debts, bankruptcy is both flexible and
rigid.
Procedures in Bankruptcy
Chapter 7 Bankruptcy:
Through this process you are free from only a certain amount
of your obligations, and the remaining part of your debts are
expected to be paid to the creditors in due time. Chapter 7,
or "straight bankruptcy", is the most popular form of
bankruptcy since it allows the debtor to "wipe the slate
clean" and start all over again. The things which takes place
during chapter 7 bankruptcy is that non-exempt assets will go
under the care of a trustee who liquidates them to satisfy
creditors for their secured interests.
Chapter 13
Bankruptcy: Under Chapter 13 bankruptcy the debtor
reaffirms to pay back his credits based on the income of the
debtor. This pay back scheme can be within a range of 10% to
100% depending on the debtor’s income and the composition of
the amount owed. This system of bankruptcy allows the debt
logged person to restructure the payment, replacing within a
new payment scheme which is usually in 3-5 years and more
affordable.
Opt for Debt Consolidation and avoid
Bankruptcy:
- In bankruptcy your credits are hardly minimized, whereas
in debt consolidation we eliminate almost 40% - 60% of your
loans.
- There are lots of conditions implemented by creditors in
bankruptcy schemes whereas the debt consolidation companies
totally takes over your financial burdens and solves them.
- In bankruptcy you have to part with your assets whereas
in debt consolidation you have to part with nothing, but
enjoy the benefits.
- Debt Consolidation gives you easy monthly options to pay
back your debts which are already half way reduced whereas
in bankruptcy schemes you are dictated by the creditors once
again.