Personal loans and credit card bills are considered unsecured debts. A home mortgage is considered a secured debt. If you have racked up numerous bills in both categories and can't afford to make monthly payments without some heavy sacrifices, you may think that your life will forever be burdened by your past financial mistakes. Chapter 13 bankruptcy is an option that will restructure your debts and allow you more time to pay them.
Your start-up means everything to you, but if it's in trouble, you shouldn't allow it to destroy your life, financially or otherwise. While it may be hard to admit it's failing, losing your life savings, all your hard work and possibly the relationships that matter most to you would be even harder. Take a deep breath and a step back to decide if you should abandon the sinking ship or if it can realistically be saved.
Declaring bankruptcy can mean different things depending on what "chapter" you choose. Chapter 7 bankruptcy and chapter 13 are the most common types of consumer bankruptcy, and they are very different in the way they take care of your debt problems. To help you decide which one you should use, you need to know what you wish from your bankruptcy filing. Read on to learn more.
This is the most common chapter and for good reason.
Filing bankruptcy can be a frightening and overwhelming experience, even more so if you do not have a lawyer with the expertise and qualifications necessary to make the process easier for you. Before you make a final choice about bankruptcy, stopping to consider a few factors surrounding your choice is a good idea. Learn more about some of the most important considerations about filing bankruptcy.
Is Chapter 7 Or Chapter 13 Best For Your Financial Circumstances?
The economy is still struggling, and many Americans are also finding themselves struggling to pay bills. It is never a good idea to just throw in the towel and stop paying bills when you find yourself underwater. There are many options for debt relief for consumers; the following ar the three most popular methods.
Debt Consolidation Loan
The first and easiest option is to obtain a debt consolidation loan. Your bank or credit union may offer these products, or you can shop around with other lenders.