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Bankruptcy:
Personal bankruptcy generally is the
debt management option of last resort because the results are
long-lasting and far-reaching. A bankruptcy stays on your credit
report for 10 years, and can make it difficult to obtain credit,
buy a home, get life insurance, or sometimes get a job. Still,
it is a legal procedure that offers a fresh start for people who
can't satisfy their debts. People who follow the bankruptcy
rules receive a discharge a court order that says they don't
have to repay certain debts.
Personal bankruptcies are usually
filed as Chapter 7 (where assets are liquidated subject to
certain exemptions with the proceeds going to creditors) or
Chapter 13 (where the debtor makes monthly payments for a period
of 3 to 5 years, usually to protect assets, such as houses and
cars, which would have been liquidated in a Chapter 7). Those
considering bankruptcy should understand that changes to the
Bankruptcy Code have made it much more difficult to qualify for
Chapter 7 relief and the rule of thumb is that anyone earning
more than $40,000 per year must file under Chapter 13.
Because every situation is unique,
and because state laws play a role in bankruptcy, anyone
considering this option should speak to a local attorney
qualified in this area of the law. Langhorne Debt Solutions does not
represent clients in the bankruptcy courts. Frankly, its often
not a good option when the primary debts are payday loans.
(With payday loans the problem is usually the impact on cash
flow rather than the size of the overall debt) However, if we
feel a client or potential client should consider this option,
or if requested, we will assist that person in finding qualified
bankruptcy counsel.
Click HERE to find out what
we can do for YOU.
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