The Choices
Numerous individuals have had success alleviating their debts on their own through a systematic payment plan that addresses each debt individually. This debt management strategy is effective, but it requires discipline. Another option is debt negotiation, in which you directly negotiate with your creditor to modify your payment terms to something you can afford. Debt negotiations can also be effective, although not everyone will be able to negotiate a repayment plan with their creditor. A creditor may reject a negotiated repayment plan if you are too far in default, have missed payments on a secured debt, or have an unstable payment history. Debt settlement can present similar difficulties and may be even more expensive in the long run. Consider whether you have any assets at risk of liquidation and whether you anticipate your financial hardship to last for an extended period of time. In either of these situations, filing for bankruptcy may be preferable.
One of the benefits of filing for bankruptcy is the immediate cessation of credit collection and liquidation proceedings. In contrast to other debt relief methods, bankruptcy can shield you from creditors while you devise a plan to settle your debts under court supervision. There are two forms of personal bankruptcy that you may find advantageous.
A Chapter 7 bankruptcy is designated for those who are experiencing extreme financial hardship or whose income is equal to or less than the state's median income level. This restriction is imposed to prevent abuse of the bankruptcy system and to ensure that only those who are genuinely unable to repay their debts are offered a debt elimination plan. Given that debts are typically not repaid in bankruptcy, the court could liquidate some of your nonexempt assets, such as luxury items, to satisfy creditors' claims. Typically, any remaining balance is eliminated, and your debt accounts are regarded as settled.
Chapter 13 bankruptcy is known as a wage earners plan because there is a level of required repayment. However, the required repayment amount is founded on a stringent assessment of your income. Consequently, Chapter 13 debts are repaid over a period of three to five years through a series of affordable installments. This debt repayment provides broader bankruptcy protection for all of your assets, including luxury items.""
" - https://www.affordablecebu.com/
