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While bankruptcy itself can also be scary, it is often the best option if you have too much debt to get a handle on your financial situation. However, which type of bankruptcy you file will also depend on what kind of debt you have. Secured and unsecureddebt is handled differently in Chapter 7 vs. Chapter 13.
If you file for Chapter 13 Bankruptcy in Indiana, you will still be obliged to pay something toward your debts; it’s just that you will be given a payment plan that reduces your unsecureddebts based upon your ability to pay, that puts you on a manageable schedule, and that holds your creditors at bay while you work on making achievable payments.
Debt consolidation might include a debt management repayment plan, credit card balance transfer, personalloan, or equity line of credit. The main strategy in any debt consolidation strategy involves replacing one debt with another debt, usually with a lower interest rate or monthly payment.
Performance Settlement is a general debt resolution company that negotiates settlements of consumers’ unsecureddebts for a fee of 25% of the amount of the enrolled debt. Department of Education (ED). This was a ruse designed to steer these individuals into signing up for the company’s debt resolution services.
Since more Americans are under pressure to resolve their debt, we’ve outlined several strategies that reduce or eliminate this financial liability. What is Debt? Debt is the amount of money you owe to a lender or creditor. Some examples of debt are mortgages, credit card dues, and personalloans.
Pay down debt. For most people, the way to do this is to get rid of unsecureddebt that they carry month to month. Pay Student LoanDebt. Department of Education has extended loan payment forbearance, zero percent interest accrual, tax-free employer contribution benefits, and its pause on collections.
Chapter 7 bankruptcy is a great financial solution for those struggling with debt, especially unsecureddebts. With Chapter 7 bankruptcy, you as the debtor can discharge most unsecured obligations after liquidating nonexempt assets. Will the Bankruptcy Trustee Sell All of My Personal Property?
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