Why You Should Get Bankruptcy Advice Online

By Essie Osborn


Filing a bankruptcy petition is not something that most people look forward to. In fact, most consumers dread the experience. The thought of being declared bankrupt is too much for some people to bear. However, becoming bankrupt is sometimes the best option for dealing with a serious debt problem. In that regard, getting bankruptcy advice online is recommended because of its cost effectiveness as well as the confidentiality it offers.

Whether you get advice online or offline, any adviser will tell you that there are various chapters that you may want to consider. For instance, if you are an individual, you may qualify for either the chapter 7 or 13. These two options are meant for consumers who are in different financial situations. An adviser will tell you everything you need to know about these two options. You will also be informed about the pros and cons of each option.

Being bankrupt has some advantages. For instance, it will stop creditors from harassing you. Bankruptcies also help debtors get peace of mind because any communication from creditors will be halted. This option effectively gives debtors immunity from any legal action that financial institutions and collection agencies may want to take. If used wisely, bankruptcies can give consumers a fresh lease of life.

Chapter 7 is, without a doubt, the most popular debt settlement option. It entails auctioning of the property belonging to a debtor to recover funds for repaying part of the outstanding debt. It is only suitable for individuals who have no source of income whatsoever. Usually, an impartial trustee is chosen to oversee the process.

Chapter 13 is very convenient since there is no auctioning of property. Usually, debtors are required to come up with an acceptable payment plan to offset the debt. To qualify for Chapter 13, the debtor needs to have a reliable source of income. When financial institutions want to repossess or foreclose on property, this chapter will effectively put a stop to their actions. The drawback of this option is that liquidation of assets will take place the moment the debtor fails to honor his or her obligations as indicated on the payment plan.

A professional adviser will be objective when outlining the pros and cons of all the available debt settlement options. He or she will also list the types of debts that can be written off as well as those that must be settled. The effects of bankruptcies on credit scores will also be highlighted by a professional. This information will prepare the debtor well to deal with the consequences of being bankrupt.

To get the protection of the court, all you need to do is file a petition with the appropriate court. A professional petition preparer can help you with this. Alternatively, you can hire an attorney to offer assistance.

Bankruptcy is available to every taxpayer, whether individual or institutional. Since this debt settlement option is often abused, trustees are usually required to put the finances of every petitioner under the microscope to ensure that they truly deserve to get legal protection. This will also help in determining whether or not the petitioner has petitioned the court for the right chapter.




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