Bankruptcy Options

While nobody particularly wishes to learn more about the variety of bankruptcy options which the American government allows different parties, the rising credit card balances and other debt loads that seemingly every household within our country now struggles to satisfy demand some reasonable exit strategy. That’s why each of the bankruptcy options – with the various chapters of the United States Bankruptcy Code now running the gamut from ordinary debtor citizens to businesses fallen upon hard times to foreign nationals to actual municipalities – were originally implemented, after all. However, consumers now examining the array of bankruptcy options have to remember that governmental revision of that same Bankruptcy Code may have limited the options open for any given family.

Chapter 7 protection remains the most highly prized of all of the bankruptcy options, of course, because of the presumed discharge of all of the appropriate consumer’s loans that the governmental program’s supposed to represent. To be honest, according to some surveys, most Americans are not even aware that different bankruptcy options exist for the individual household. However, with fewer and fewer debts (and debtors) officially designated eligible for the Chapter 7 bankruptcy protection, many borrowers have had no choice by to consider other options. Consumers with reasonably comfortable income histories – and, since the cut off level changes from state to state, many heads of household would be quite surprised to learn what the federal government deems excessive – shouldn’t assume that the Chapter 7 bankruptcy option shall always be available no matter how high their debt load or how empty the family’s current bank accounts.

If Chapter 7 bankruptcy is no longer an option because of prior income records (which, since the salary guidelines are estimated by the Internal Revenue Service estimation of any given state, could seem terribly low if the borrowers reside in the metropolitan area of a poorer region), the consumers filing for bankruptcy protection would have no other option but to attempt Chapter 13 debt organization. Since the program forces entrants to actually pay back the majority of their loans under the authority of the bankruptcy court trustee, Chapter 13 does not make a good deal of sense for any borrowers not expressly concerned about the bankruptcy options for safe guarding property. Upon petitioning for the Chapter 7 bankruptcy options – even Chapter 7 declarations virtually guaranteed to be denied by the courts because of the filers’ past income levels – there will be an automatic stay handed down which momentarily prevents law suits and forfeiture initiated by the lenders, but that shan’t last.

After the relatively brief period midst the belly of the Chapter 7 bankruptcy option’s proceedings (generally less than three months and never, even during these dark recessionary days, more than four months), borrowers that cannot regularly make their expected payments on time shall have no legal recourse to save their property. At that point, the Chapter 13 bankruptcy option may well seem like a more attractive program for borrowers aiming to protect hearth and home. Still, there’s no guarantee the bankruptcy court trustee forced to employ IRS estimations of a given state’s cost of living would even allow the household sufficient money to retain the residence. With so very many borrowers leaving the Chapter 13 bankruptcy aegis because of an inability to maintain debt payments artificially elevated by the current regulations, borrowers have been driven to investigate other options besides bankruptcy. Such plans as the ones offered by the debt settlement negotiation companies which feature a mutually agreed upon discharge of half the credit card account balances may not have quite the reputation of Chapter 7 debt elimination, but, with bankruptcy options thoroughly diminished, they’re certainly better than nothing.

The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.

Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?

Avoid Bankruptcy

Debt Relief

Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection.

Are your finances spiraling out of control? Get the information you need today to stop harassing creditor’s phone calls. Total Debt Relief provides a matching service to connect you with pre-screened Debt Settlement Professionals. These debt management pros will educate you on all of the options available to you to get out of debt. Total Debt Relief helps you make the most informed decision possible so that you can get your financial life back on track.