These days, many people are asking the question: “Do you get out of debt if you file for bankruptcy?” There are a few things to keep in mind when considering this option. The first thing is that filing for bankruptcy should be considered as a serious step and should not be taken lightly.
Declaring Chapter Seven will leave your credit intact, but it will be difficult to access it. It will take years to be made whole again and this can be a very stressful situation. You may find that having to work double time to pay back your debts makes the matter worse. When you realize this, you may want to consider bankruptcy as an option. When you consider it this way, you have to realize that the alternative is much worse. When you get to that point you should consider consulting a Hawaii bankruptcy lawyer.
One other thing to keep in mind is that you can get in touch with your creditors to try to work out a payment plan. This can be done in a couple different ways. You may choose to file for bankruptcy and try to get some type of payment plan. Another method may be to work with a debt settlement agency to get your debt reduced.
It is important to understand all of the pros and cons involved with these two options. If you have debt, you may want to get your creditors to work with you on a debt settlement instead of sending you to court. With a debt settlement plan, you will get to pay less money to the creditors than what you owe. You will not have to go to court or have to worry about losing your home.
However, there are some problems associated with this method. First, if you get caught up in the middle of a settlement, you may not have enough cash to pay the amount you owe. If this happens, you could face foreclosure and damage to your credit rating as well. Another problem is that in most cases you cannot negotiate very well when it comes to settling debts. You may be able to settle for only a percentage of what you owe, and not an amount that you can afford.
If you declare bankruptcy, you will face serious ramifications for a long time to come. Once you declare bankruptcy, any company that you owe money to will not be able to contact you. They will also be able to garnish your wages without you knowing it. You could even be put in jail depending on what state you live in. If you have bad credit, you may have to spend many years rebuilding your credit.
Some people believe that debt settlement is a better option than bankruptcy because they do not have to deal with the long term negative effects of bankruptcy. While this may be true in some cases, you should not let bankruptcy prevent you from seeking debt relief. If you are struggling to pay your bills, you may want to consult with a debt relief agency to see if there is another way to get out of debt.
You may want to look into a debt settlement company before you opt for bankruptcy. A debt settlement company can help you negotiate with your creditors so that you can pay less money. This can allow you to pay off your debts in a much shorter period of time and save you from facing the complications of bankruptcy. You can visit the website of a debt relief network to learn more about debt settlement and how other bankruptcy filers are getting out of debt.
Cain & Herren, ALC
2141 W Vineyard St, Wailuku,
HI 96793, United States