Early planning can assist you in determining which exceptions you can claim, whether filing now or at a future date is optimal, and understanding which chapter provides you the most financial stability. If you’re facing mounting debt and are not sure where to turn for help, contact us today to see whether bankruptcy is best for you!
Contact USYes. Its called Debt Settlement.
The Basics of Debt Settlement
Debt settlement is an agreement between a lender and a borrower for a large, one-time payment toward an existing balance in return for the forgiveness of the remaining debt. Someone who owes $10,000 on a single credit card, for example, may approach the credit card company and offer to pay $5,000. In return for this one-time payment, the credit card company agrees to forgive or erase the remaining $5,000 still owed.
The length of time that bankruptcy filing reflects on a credit report is dependent on which chapter is filed. If a chapter 7 is filed, the bankruptcy filing will be removed after a 10-year period has elapsed. For a chapter 13 the bankruptcy filing will be removed from a credit report after 7 years.
It is generally possible to purchase a car within 6 months of filing bankruptcy and a home within 1-2 years of filing.
After filing bankruptcy there will be a hearing roughly 30 days after filing. This hearing is the 341 Meeting of Creditors and is conducted by the trustee in your case, not a judge. The purpose of this hearing is to ensure the accuracy of the documents filed in the bankruptcy proceedings.
341 Meeting of Creditors hearings are not an avenue through which creditors can embarrass individuals or pressure them into making payments on debts. Due to
COVID-19 all hearings are currently held telephonically and are conducted at the office of Chuck Moss Bankruptcy Attorney
Chapter 7 is one type of bankruptcy procedure designed eliminate most debts. These procedures are called "chapter 7 bankruptcies" because they are outlined in chapter 7 of the Bankruptcy Code. Chapter 7 bankruptcies are also called "fresh start" or "liquidation" bankruptcies.
Chapter 13 (sometimes called a "wage earner plan") allows an individual to pay his or her debts over an extended period using a court-approved, supervised, and enforced payment plan. Not all creditors need be paid in full and unpaid amounts will be discharged (with some exceptions). Chapter 13 bankruptcy filers help create their own payment plans, which give them three to five years to pay personal debt from their disposable incomes (i.e., whatever is left after necessary expenses, like food and shelter, have been paid). In a Chapter 13 bankruptcy, individuals are often allowed to keep their property.
Typically, credit scores are already low prior to filing bankruptcy. Although filing bankruptcy will affect your credit score this does not prevent your score from rising. It is possible to drastically raise credit score 6-8 months after filing.
You may be considering a Chapter 7 or Chapter 13 bankruptcy and wondering which one is better to file.
Both chapters of bankruptcy provide debt relief and stop creditor harassment.
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