Chapter 13 is filed when there is ZERO possibility of getting out of debt; since 2005, millions of Americans have been caught up in the mortgage collapse. Millions of Americans have lost their homes as a result of inverted mortgages, and there is no way to reverse the significant economic collapse we have experienced.
Those who relied on the equity in their residences were also devastated by the simultaneous loss of both their home and their savings. Coupled with the loss of a job, the closing of a business, or a divorce, you would be an ideal candidate for Chapter 7 and a fresh start.
Once bankruptcy is filed, it will take a year or more before you can get a low credit limit card and begin to rebuild your credit. It has taken me three years after filing bankruptcy and paying a low credit limit card (and annual fee) of $59 to get the ball rolling, which is a small price to pay to get your credit back on track.
After 18 months of paying before the due date and also paying off the balance (with no interest), my credit score increased from 525 to 625 in that year. I recently received a no-annual-fee Capital One card with a $2000 credit limit, and my credit score jumped to 675 (considered good credit) in less than 2 years.
The greatest aspect is obviously starting over. Whether it is due to a failed business, failing marriage, or an underwater mortgage, you are able to get a fresh start and get rid of what has happened to over 100 million Americans over the past six years so that you can move forward and begin again.
Chapter 13 is for situations that enable concessions to reduce debt payments if there is an opportunity to repay creditors. Chapter 13 requires significantly more compliance, as well as precise adherence to guidelines.
Likewise, the cost of filing for bankruptcy will differ widely; I've discovered that the average fee, including court costs, will be around $1000 in the Detroit area. Chapter 13 will cost significantly more, so always consult with a bankruptcy attorney (I recommend speaking with at least two) to determine which option is best for your situation.
" - https://www.affordablecebu.com/
