Filing Bankruptcy

What Does Bankruptcy Entail

Most people do not strive towards bankruptcy and consider this option as the final option when all else has failed. If you have to declare bankruptcy, you could possibly deal with the social stigma that comes with this decision. Nowadays on most job applications, one of the questions that’s gets asked is, “have you ever filled bankruptcy” so this decision could in fact, haunt you for the rest of your life.  This question is also going to be on every loan application and or credit application you’ll ever apply for. You’ll also have to deal with this mark on your credit report for about ten years.

Types of Bankruptcy’s:

Chapter 7 bankruptcy discharges all of your debt; whereas, in Chapter 13 bankruptcy you propose a payment plan to your creditors. This plan usually spans the time frame of five years and it’s the court decision whether or not you are required to pay back all or only a portion of your debt. In Chapter 13 bankruptcy, you’ll have a section 341 hearing where the court will approve or disapprove your proposed payment plan. In Chapter 13, you do stay in possession of your property, but unlike Chapter 7, your debt is not immediately discharged.

There are new, stringent requirements if you’d like to file for Chapter 7 bankruptcy. According to the BAPCPA, The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, you will need to now jump through many more hoops to qualify for Chapter 7. For example you’ll need to find out if your income qualifies as being above the median level and this pertains to each state and depends on your household size. You’ll have your income and living expenses examined as to whether or not you can reasonably be expected to actually pay back your debt to your creditors. If your disposable income is above a predetermined level (“Means Test”), you will not be eligible to file for Chapter 7 and will need to see if you qualify for Chapter 13. You’ll also be required to seek out credit counseling and from a government, pre-approved financial counselor prior to filing bankruptcy.

Before even considering bankruptcy, you should evaluate all your options, from credit counseling to debt management and debt settlement just to name a few. Give us a call or inquire online for free evaluation of your current situation.

Who We Are

The Debt Alternative Center offers back-end debt settlement processing for new and existing companies providing debt resolution. Our National backend service also includes FDCPA protection and Debt Resolution, Attorney and Performance Model Debt Settlement, along with IRS Tax Resolution, Defaulted Student Loans and Bankruptcy.

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Call us today 877-282-0555, or inquire online. All of our services are FTC & TSR compliant. Our attorney’s have A+ BBB ratings and our back end debt settlement processing service offers the highest splits in the industry. No upfront cost, personal training and marketing support. Contact us today to learn more about our debt settlement net branch and franchise affiliate programs.
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