Last year I had some financial difficulties and I couldn't pay off my debt. The uncertainty of my financial future was adding to my already stressful life. After months of worry, I finally decided to contact a bankruptcy attorney. After discussing my options with the attorney, I decided to file bankruptcy. My name is Kyle Diggler and if you're struggling with debt and considering bankruptcy, I'm here to help you. I'm not an expert, but I want to share my story and my experience of filing bankruptcy with others who are in a similar situation. As you read my blog, you'll learn all about the bankruptcy process so that you'll know what to expect. I'll also share some tips to help you start your life over financially. I hope that my blog answers all the questions you have about filing bankruptcy.
There are several advantages to Chapter 13 bankruptcy, including the ability to save secured assets and t
When you are dealing with a lot of debt, it can be hard to know where to turn. Filing for bankruptcy seem
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If you're thinking about declaring Chapter 13 bankruptcy, you may be wondering what the benefits are over simply consolidating your loans. Chapter 13 bankruptcy isn't like Chapter 7 bankruptcy; instead of wiping out your debts, it creates a payment plan system that you can use to get your debts back on track. Though it operates very similarly to a loan consolidation, there are some benefits.
Chapter 13 Bankruptcy Stops Your Calls Immediately
One of the hardest things to deal with regarding debt is the stress of constant calls, emails, and letters. When you go through the process of Chapter 13 bankruptcy, creditors must stop contacting you immediately regarding your debt. This is not so when you are consolidating your loans. Until the loan consolidation actually goes through, you will still be getting calls from creditors.
Chapter 13 Bankruptcy Doesn't Rely on Your Credit
When you consolidate your debts, you need to take out another loan to pay off those debts. You'll first need a credit score and income good enough to qualify for this loan (or you'll need a co-signer). Your credit will also have to be good enough to qualify for a low rate; if you can't qualify for a low enough rate, the consolidation serves no purpose. A Chapter 13 bankruptcy doesn't rely on your credit to restructure your debts.
Chapter 13 Bankruptcy Protects You for 3 to 5 Years
As long as you stay on your payment plan, Chapter 13 bankruptcy will protect you from your creditors for the next 3 to 5 years. The bankruptcy will help you restructure and pay off all your debt, not just the debt that you could consolidate and roll into another loan. Of course, the caveat is that your credit will be damaged during this time; however, if you have a lot of unpaid debt, it's likely your credit has already been damaged.
Chapter 13 Bankruptcy Can Restructure Your Debt
You may only have to pay a portion of your debt if you restructure through Chapter 13 bankruptcy, but you'll need to pay the full amount eventually if you consolidate your loans. If you find yourself unable to pay the consolidated loan, you may end up in the same situation later on.
Bankruptcy can be a complicated process, and whether a loan consolidation or bankruptcy is best for you depends on the type of debt you have. You should consult with a bankruptcy attorney in your area or reach out to a financial specialist before moving forward, as there may be factors that aren't immediately obvious.
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