Deciding on whether or not to file bankruptcy is a serious decision for anyone to consider. Every year, about ​1.5 million Americans file bankruptcy​. Some people are in so much debt, that bankruptcy is their only financial salvation. For some people, there are other options.

Trout Associates Can Help You
If you are considering filing, think again because there are other options out there. Trout Associates is here to help you in any way that you need to guide you through.

Is filing right for me?

To best understand if bankruptcy is right for you is to contact a bankruptcy attorney to find out if bankruptcy is the right decision for your particular situation. Our objective here is to merely offer the general pros and cons of filing bankruptcy.

Two types of bankruptcy typically apply to the average consumer; Chapter 7 and Chapter 13. These bankruptcies are very different in nature and operate in ways that are somewhat opposite.

With a Chapter 7 bankruptcy, you are able to discharge your debt legally, but you must qualify for a Chapter 7 by taking a means test, which will require you to answer questions about your household and financial situation. It is easier to be eligible for a Chapter 7 bankruptcy than it is to qualify for a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy consists of a forced repayment plan rather than the immediate debt discharge granted by the Chapter 7 bankruptcy. A bankruptcy trustee is assigned to handle the repayment of the consumer’s debt. The payment process takes between three to five years to complete.

Pros
Debt Elimination ​[Chap. 7]
When a consumer files a Chapter 7 bankruptcy, their debt is discharged rather quickly.

Rapid Processing Time ​[Chap. 7]
The Chapter 7 bankruptcy process time is rather short. The entire process typically takes about 90 days.

Legal Protection during the Process
The filer of bankruptcy is granted legal protection from creditor actions during the process of the bankruptcy. No wage garnishments or legal actions can be taken by creditors at this time.

Bankruptcy Trustee Handles Debt Payments ​[Chap. 13]
With a Chapter 13 bankruptcy, you do not have to worry about paying the individual creditors yourself. The bankruptcy trustee is paid the monthly required amount by the filer and divides the amount among all creditors.

Cons
Credit Takes a Hit
The credit hit that bankruptcy filers take is often the main fear that consumers express when deciding whether or not to file bankruptcy. A Chapter 7 bankruptcy will affect the credit for 10 years, and a Chapter 13 bankruptcy affects the credit for 7 years. While the credit hit is a reality, there is still the chance to get home financing within two years with Chapter 7.

Forced Liquidation of Assets ​[Chap. 7]
In some cases, filers of Chapter 7 bankruptcies will have to liquidate some of their assets.

Few Filers Complete the Process ​[Chap. 13]
Due to the lengthy process (three to five years), only one-third of Chapter 13 filers make it through the process until the end.

Conclusion
Are you considering filing for bankruptcy? DON'T! Trout Associates can help you avoid filing! There is a way out! Read all of this above! What a headache this is! Consult and get advise on alternatives today!
SHARE 0 comments

Add your comment

Thanks for visiting! If you have any questions or concerns, please email me at bbrown@thesmallthings89.com! Comments have to be
approved on this blog due to spammers!

--Bre

© The Small Things · THEME BY WATDESIGNEXPRESS