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Say goodbye to creditcard stresssee if Chapter 7 bankruptcy is your solution. Creditcarddebt relief often seems unattainable, but there is a way forward. Chapter 7 bankruptcy can help clear debt and give you a fresh start. Will it erase all your debt, or are there limits?
If you do not qualify for a Chapter 7 bankruptcy to liquidate your debts, you may be required to pay back a significant portion of your debts under a Chapter 13 Bankruptcy, and still suffer the negative impact to your credit score. Protect secureddebt (home and car) from default to avoid a repossession or foreclosure.
It is challenging to secure lower rates with high existing debt levels because you have a lower credit score due to excessive credit utilization. Adding new debt to an already overburdened budget can further complicate your financial circumstances. Is debt consolidation risky?
The bankruptcy trustee will sell your non-exempt assets to pay a portion of your debts to creditors. You’ll then be able to discharge the balance of eligible debts, such as creditcarddebt and medical bills. Mortgages and car loans are both considered secureddebts because they both have backing collateral.
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