Chapter 13 Bankruptcy Information

While most Americans do not know a great deal of information about bankruptcy plan beyond the storied Chapter 7 debt elimination program, Chapter 13 bankruptcy protection has nonetheless maintained a steady increase of usage over the last four years. Across the country, virtually every state has reported a surge of interest in Chapter 13 bankruptcy information, but, while there’s a variety of reasons to explain the new fascination with the Chapter 13 debt re-organization technique, many consumers end up essentially misled about the potential for their own governmental safeguards because they depended upon outdated information regarding Chapter 13 bankruptcies (even, at times, from the attorneys pledged to guide them through such matters).

After the Bankruptcy Abuse Prevention and Consumer Protection Act skated through congress and met presidential approval in 2005, most every aspect of the Chapter 7 and Chapter 13 bankruptcy programs endured wholesale revisions, and some law firms that do not have substantial experience in the field – or, as has happened more and more frequently, just recently decided their practice should specialize in bankruptcies – might not have all the appropriate information themselves. According to the United States Bankruptcy Code as currently written, the trustee chosen by the courts from the filer’s official county of residence will be restricted to an analysis of the prospective applicant’s income for the year just before he or she (or, with a married couple, they) declared bankruptcy, and that information alone would be the difference between entrance to the Chapter 7 or Chapter 13 bankruptcy programs.

This is perhaps the most important explanation on why compiling Chapter 7 and Chapter 13 bankruptcy information from a diverse array of resources should be considered so utterly obligatory for every borrower. After all, Chapter 13 bankruptcy does not effect the sweeping discharge of unsecured debts Chapter 7 bankruptcy delivers for those borrowers that manage to qualify for the protection, but information regarding a Chapter 13 bankruptcy will still be sent to the three main credit bureaus the same as with Chapter 7 and with similarly ruinous consequences. Indeed, though the borrowers might reasonably think – given a misreading of the newly altered United States Bankruptcy Code which seems almost intentionally complicated to preclude proper information from seeping through to desperate citizens – that a Chapter 13 bankruptcy would be treated differently since the program asks filers to repay most of their loan balances, evidence of participation within Chapter 13 bankruptcy has nearly identical repercussions to the Chapter 7 debt liquidation scheme, and information regarding consumers’ involvement in Chapter 13 bankruptcies could haunt them for almost a decade.

Most consumers that find themselves unable to enter Chapter 7 bankruptcy and unwilling to endure the limited benefits and yawning drawbacks of Chapter 13 protection would do well to seek out information on some of the newer debt relief strategies such as the debt settlement negotiation solution. Like Chapter 13 bankruptcy, borrowers will still have to hand over all of their financial information to the scrutiny of strangers and accept the payment schedule drawn up by the new authorities, but, since settlement negotiation regularly reduces credit card balances by more than half the original amount with a barely notable impact upon the credit ratings and FICO scores of their clients, the plan offers a far more dependable protection against creditors than Chapter 13 bankruptcy could hope to fulfill under current guidelines.

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?

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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.