Filing For Bankruptcy – Bankruptcy Debt Settlement – New Era Debt Solutions
If you are investigating filing for bankruptcy, it’s good to know a few facts about how to proceed, and whether to proceed. You may be trying to determine the bankruptcy debt settlement options, and decide which one is for you. Because of its long-term negative impact on your creditworthiness, bankruptcy is considered a last-resort option.
- The law mandates that when filing for bankruptcy you must complete a US Trustee approved program of credit counseling first. Your bankruptcy attorney must receive a copy of the course completion certificate before filing either a Chapter 7 or Chapter 13 bankruptcy in court.
- Also, before you obtain a bankruptcy discharge you must complete a course of debtor education which teaches you how to handle consumer credit.
- When comparing bankruptcy debt settlement, you will see that an advantage of bankruptcy is that your eligible debts will be discharged and the burden of debt obligation will be off your shoulders.
- One of the most obvious disadvantages of filing for bankruptcy is that it will reflect on your credit report for ten years or more, and you will not be able to obtain a discharge for another six years.
- Unfortunately, if you have a co-signer on any of your bankruptcy debt, the co-signer will be made liable for the entire debt except in Chapter 13 bankruptcy.
With debt settlement you can usually get out of debt within two to three years and you will have paid between forty to sixty percent of your debt. Your credit will improve and you will not have a bankruptcy on your credit report. So bankruptcy debt settlement comparisons are good to do in order that you can make the best decisions for yourself and your future.