Talk to a Consultant Today
Has it become impossible for you to pay off your debts?
Do you think filing for Bankruptcy is the only option left?
Bankruptcy isn’t something to be taken lightly and filing for it can be the decision of a lifetime. Before you file for it, you need to weigh in all your options or better yet, consult a debt relief agency like Fresh Start Fast to help you find a better alternative.
With all of our years being in this business, we have helped countless clients find better alternatives than Bankruptcy. However, if you think that declaring Bankruptcy is your only viable option, you need to clearly understand what it is and its aftermath.
What is Bankruptcy?
Bankruptcy is often considered as a last resort to give your failing finances their last chance at revival. It is a legal way of having your debt obligations adjusted to less harsher terms than the original.
Under Bankruptcy, most of the consumer debts are either renegotiated or completely forgiven if your claims qualify successfully.
Some of the consumer debts that fall under the discharge category of Bankruptcy include the following:
- Personal Loans
- Business Debts
- Credit Card Payments
- Utility Bills
- Medical Bills
Filing for Bankruptcy means you will be fully scrutinized and assessed in the court of law. The court assess your current financial standing including all your debts, assets and liabilities to determine your qualification. Depending on the category of Bankruptcy you qualify for, your outstanding debts will either be forgiven or paid off by selling the non-exempted properties of assets.
Even if you qualify for Bankruptcy, you will still need to pay the following things:
- Tax Debts
- Child Support
Types of Bankruptcy
Consumers are often only eligible for either Chapter 7 or Chapter 13 Bankruptcy. Let’s find out the difference between the two:
Chapter 7 is the liquidation Bankruptcy and refers to when you completely go broke and are unable to pay off your debts. It does not have a maximum or minimum debt threshold. But Chapter 7 Bankruptcy is often tested before declaration.
If your income does not qualify for Chapter 7 Bankruptcy, you fall under Chapter 13, also known as the wage earner Bankruptcy. Under Chapter 13 Bankruptcy, your debts aren’t discharged. Instead, they are restructured to be paid over a period of years. Like Chapter 7, Chapter 13 Bankruptcy also does not have a minimum debt threshold attached to it.
If you are confused about which category you fall under, reach out to Fresh Start Fast. We will not only help you in finding the right Bankruptcy solution for you but also provide you with our assistance in filing for it.
We also offer multiple debt relief services that can prove to be a better alternative than filing for Bankruptcy.
If you wish to end your financial struggles and give yourself a fresh start, let us help you redeem yourself.
For complete details and assistance, do not hesitate to call us!