Bankruptcy Counseling: Tips And Strategies

Bankruptcy Counseling: Tips And Strategies

Bankruptcy is one of the most crucial phases of one's life that everyone tries to avoid, and therefore they are least prepared to face the music, when it actually matters. But proper information and understanding about how to file chapter 7 bankruptcy can work wonders for you in emergency situation.

Bankruptcy is a stage that no one wants to encounter during his/her entire lifetime. Whether you like it or not, sometimes it may hit you. Therefore, it is better if you are equipped with proper information on the process and consequences of filing bankruptcy online in order to avoid any last minute surprises.

Qualification Criteria

The first thing you should consider before filing for bankruptcy is the qualification criteria. For any type of bankruptcy application the qualification criteria includes:

You must have a permanent residence, a place of business/ property in the US.

You should not have got an approval for a Chapter 7 discharge in the last 6 years

You must not have completed a Chapter 13 plan.

Your bankruptcy filing shouldn't have been dismissed for cause in the last 180 days.

You ought to pass a various means tests to qualify.

Approval Process

So as to get bankruptcy help, you must consult a court and prove your eligibility. Once your eligibility is proven, you are assigned a trustee to over look your financial situation. The trustee would have control of all your finances henceforth be it salary or any other and he will ensure effective management of outstanding debts.

Credit Scores and Bankruptcy

Any type of bankruptcy stays on your credit record for about 7 to 10 years and during this time frame, one finds it very difficult to get any type of loan or credit from lenders. In other words, filing for bankruptcy highly damages your credit score by showing you incapable of repaying your debts.

Alternatives

There are many other options available, which can contradict the bankruptcy effect. Some of them are debt management and debt consolidation programs. Many online companies offer such plans based on your current financial status. You can look for such plans and companies offering them on the Internet.

To have a better idea of your chances to get help under bankruptcy laws, it is recommended to choose a reliable bankruptcy counseling firm.

Have you been considering the option to file Chapter 13 bankruptcy due to the dwindling financial situation that you face? But before you actually do so, you should understand and grasp all the aspects that are related to the topic in order to ensure guaranteed help under this plan.

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