Talk:Debt Relief: Research Reports

Bankruptcy Summary

Bankruptcy is considered to be a "major bomb" in the world of credit. It should be the last resort in most cases for debt relief. Depending on the situation it is sometimes unavoidable.

When selecting a bankruptcy attorney, research his/her background for work experience in this sensitive field of debt relief. There are two types of personal bankruptcies, Chapter thirteen and seven. Corporate bankruptcy is called Chapter eleven and can only be filed by businesses.

Credit laws vary from state to state for filing and so does liquidation of assets over a period of time.

Initially, the person filing will get a sigh of relief from being overwhelmed. Later, credit agencies and other lenders will analyze his/her credit information with a fine tooth comb for at least "ten" years or longer. This a combination of an advantage but a disadvantage to debt relief.

Lenders almost immediately view a person as a high - risk for credit due to having bad debt written off through bankruptcies.

Chapter thirteen can be filed in a court with a trustee assigned and is considered a "reorganization" over a period of time to repay debt. The court trustee decides the total amount to be paid back and the time allotted for payment. The person's salary or income determines what will be allowed for the cost of living and the amount that will be disbursed to the creditors. No new debts can be accumulated without the court's permission (i.e., credit cards, loans). Upon closing, obligations are fulfilled and the person can begin on a new credit journey, but the on this new path the person needs to be aware the discharge will remain on the credit report for the next five to seven years.

Chapter seven can be filed in a court and the person will walk away from most of the debt secured and unsecured. The person's salary is freed from the threat of garnishments and being sued by the creditors. The information stays on the credit report for the next ten years and creditors will be view the person as a higher - risk than if the person had filed a Chapter thirteen.

When a person has filed for either bankruptcy it becomes public record information that can be viewed by anyone with acccess to public records documents.

Again, bankruptcy needs to be considered as the very last option to debt relief.