Debt relief may be something you’re looking into if you’ve lost time at work or lost your job recently. Having great amounts of debt can make it hard to get your finances back on track when you’re only able to work part time or find piece work to bring in an income.
One amazing idea for getting your debts under control could be bankruptcy. If you’ve tried consolidating your debts, negotiating with creditors and taking other steps to pay what you owe but have had no luck, then a bankruptcy can be a good choice.
You have two primary options when it comes to filing for bankruptcy. The first is to pursue Chapter 7 bankruptcy, which is liquidation bankruptcy, so that you can eliminate your debts and start over. Liquidation bankruptcy does sometimes require you to give up your assets to pay back creditors, but there are exemptions that your attorney can talk about with you.
Chapter 13 bankruptcy doesn’t require you to give anything up, in most cases. Instead, you’ll be placed onto a payment plan for between three and five years, depending on your income and other factors. You will need to make the agreed-upon payment on time each month for the length of the bankruptcy. If you do that, then any remaining qualifying debts after the 3- or 5-year period will be dismissed.
If you are considering bankruptcy as a way to get out of debt, you may want to learn more about each type and how it helps. Our website has more information about bankruptcy and how it can help you get a fresh start.