How to Battle Credit Card Bankruptcy
Sometimes, credit card debts just become way too big for one to be able to pay them off on time.
Although it should only be a last resort, filing for credit card bankruptcy is the best solution to get out of this financial mess.
There are many options to choose from when it comes to filing for bankruptcy.
Usually, the first option individuals choose is to file for chapter seven bankruptcies.
This would require one to provide non-exempt assets to someone who has legal authority on one's behalf.
These assets will then be sold and the proceeds will go to the creditors.
This way, debts are being paid off and the person will become debt-free in no time.
But the court requires one to pass some special requirements.
One has to not have high income or possess a lot of non-exempt assets.
Otherwise, the court will have to disapprove of your filed case.
The other way to go, of course, is to file for chapter thirteen bankruptcies.
Credit card bankruptcy filing may also be done through chapter thirteen.
This type would allow one to get lower monthly payments which they will pay off to the creditors.
Now, bankruptcies always take a toll on one's credit scores and the bad record can stay there for up to seven years.
But, chapter thirteen ones have much lesser implications than chapter seven ones.
Since creditors are able to receive a regular debt payment, credit scores are likely to improve faster, usually in just a couple of years.
This still does not make applying for loans and borrowing money easier though.
But, at least, it will give one ample time to pay debts off and get things back in the right perspective.
As said, filing for a credit card bankruptcy must only be done when there are no other means of paying off all the credit card debts.
Otherwise, one should not take such action as it can greatly affect credit scores.
There are still other ways to prevent filing for a credit card bankruptcy.
There are many companies out there that can help you in debt management.
There are also non-profit organizations that are ready to help at a very minimal cost.
Sometimes, they even offer their services for free.
These people have a lot of experience in dealing with such situations and thus, they will be able to help you get a realistic payment plan and get you debt-free without ever having to file for bankruptcy.
Although it should only be a last resort, filing for credit card bankruptcy is the best solution to get out of this financial mess.
There are many options to choose from when it comes to filing for bankruptcy.
Usually, the first option individuals choose is to file for chapter seven bankruptcies.
This would require one to provide non-exempt assets to someone who has legal authority on one's behalf.
These assets will then be sold and the proceeds will go to the creditors.
This way, debts are being paid off and the person will become debt-free in no time.
But the court requires one to pass some special requirements.
One has to not have high income or possess a lot of non-exempt assets.
Otherwise, the court will have to disapprove of your filed case.
The other way to go, of course, is to file for chapter thirteen bankruptcies.
Credit card bankruptcy filing may also be done through chapter thirteen.
This type would allow one to get lower monthly payments which they will pay off to the creditors.
Now, bankruptcies always take a toll on one's credit scores and the bad record can stay there for up to seven years.
But, chapter thirteen ones have much lesser implications than chapter seven ones.
Since creditors are able to receive a regular debt payment, credit scores are likely to improve faster, usually in just a couple of years.
This still does not make applying for loans and borrowing money easier though.
But, at least, it will give one ample time to pay debts off and get things back in the right perspective.
As said, filing for a credit card bankruptcy must only be done when there are no other means of paying off all the credit card debts.
Otherwise, one should not take such action as it can greatly affect credit scores.
There are still other ways to prevent filing for a credit card bankruptcy.
There are many companies out there that can help you in debt management.
There are also non-profit organizations that are ready to help at a very minimal cost.
Sometimes, they even offer their services for free.
These people have a lot of experience in dealing with such situations and thus, they will be able to help you get a realistic payment plan and get you debt-free without ever having to file for bankruptcy.
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