Consolidating debt vs bankruptcy

When you consolidate your debts, you reorganize multiple debt payments into one payment.

In these challenging economic times, debt consolidation and bankruptcy are popular debt management strategies. To find out, learn about the advantages and disadvantages of each approach.

(To learn about other ways to deal with debt, visit our Debt Management topic area.) Proponents of debt consolidation often promote this strategy as a simple way to save money and protect your credit rating.

To start the process, the debtor files a petition in the local bankruptcy court and pays required fees.

The petition should list all assets and debts, income and expenses, any existing contracts or leases in the debtor’s name, as well as a statement of financial affairs and the most current year’s tax return.

To be eligible to file for Chapter 13 bankruptcy, an individual must have no more than $383,175 in unsecured debt, such as credit card bills or personal loans.

They also can have no more than

They also can have no more than $1,149,525 in secured debts, which includes mortgages and car loans. An individual involved in Chapter 13 also must undergo credit counseling from an approved agency within 180 days of filing the bankruptcy suit.Federal law offers different types of bankruptcy programs to deal with the varying financial problems of businesses and individuals.In particular, Chapter 13 bankruptcy is designed for individuals or married couples who are capable of working out their debts if given several years.Debtors create a plan detailing how they plan to repay all or part of their debts during a period of no less than three and no more than five years.Because these individuals must have a regular income to qualify, Chapter 13 Bankruptcy is also referred to as a “Wage Earner’s Plan.” A Chapter 13 filing is attractive to many debtors because it allows them to deal with their debts while keeping their property.Often in life, debt can seem overwhelming; credit cards, late payments, medical bills and overdue accounts can add up.

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They also can have no more than $1,149,525 in secured debts, which includes mortgages and car loans. An individual involved in Chapter 13 also must undergo credit counseling from an approved agency within 180 days of filing the bankruptcy suit.

Federal law offers different types of bankruptcy programs to deal with the varying financial problems of businesses and individuals.

In particular, Chapter 13 bankruptcy is designed for individuals or married couples who are capable of working out their debts if given several years.

Debtors create a plan detailing how they plan to repay all or part of their debts during a period of no less than three and no more than five years.

Because these individuals must have a regular income to qualify, Chapter 13 Bankruptcy is also referred to as a “Wage Earner’s Plan.” A Chapter 13 filing is attractive to many debtors because it allows them to deal with their debts while keeping their property.

Often in life, debt can seem overwhelming; credit cards, late payments, medical bills and overdue accounts can add up.

||

They also can have no more than $1,149,525 in secured debts, which includes mortgages and car loans. An individual involved in Chapter 13 also must undergo credit counseling from an approved agency within 180 days of filing the bankruptcy suit.

Federal law offers different types of bankruptcy programs to deal with the varying financial problems of businesses and individuals.

In particular, Chapter 13 bankruptcy is designed for individuals or married couples who are capable of working out their debts if given several years.

Debtors create a plan detailing how they plan to repay all or part of their debts during a period of no less than three and no more than five years.

,149,525 in secured debts, which includes mortgages and car loans. An individual involved in Chapter 13 also must undergo credit counseling from an approved agency within 180 days of filing the bankruptcy suit.Federal law offers different types of bankruptcy programs to deal with the varying financial problems of businesses and individuals.In particular, Chapter 13 bankruptcy is designed for individuals or married couples who are capable of working out their debts if given several years.Debtors create a plan detailing how they plan to repay all or part of their debts during a period of no less than three and no more than five years.Because these individuals must have a regular income to qualify, Chapter 13 Bankruptcy is also referred to as a “Wage Earner’s Plan.” A Chapter 13 filing is attractive to many debtors because it allows them to deal with their debts while keeping their property.Often in life, debt can seem overwhelming; credit cards, late payments, medical bills and overdue accounts can add up.

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