Thinking About Filing Chapter 13 And Doing Debt Consolidation?

The answer to this one is easy. Stop thinking. In such a situation, no matter what your reasons, you should not even be considering filing Chapter 13 bankruptcy. For a huge number of reasons, it is a far better idea to go with debt consolidation instead, and it is a process that is far more likely to succeed.

Chapter 13 bankruptcy can be attractive, it is true. However, what most people don’t know is that the majority of chapter 13 bankruptcies fail, and that you will probably have to declare the worse chapter 7 bankruptcy, losing a large amount of your assets in the process, instead. However, the same is not true of debt consolidation. This is because, in chapter 13 bankruptcy, you will be going at it alone. Any help in the process will have to be paid for by you, and will probably cost a huge amount. However, debt consolidation companies give you all of that assistance for free.

They are paid by the interest on your debt, which you’d be paying anyone during the bankruptcy process, so essentially you are getting the package deal with bonuses for free. In chapter 13, furthermore, your living expenses will be decided by the government. They will say what you can afford to pay and everything else will go towards paying off your debt over the limited period that you have. This period is typically limited to either 3 or 5 years to pay off the entire debt, so you will have very high payments on your bankruptcy plan. However, in debt consolidation, you and your creditor can set the time limit, interest rates, and payments to whatever you think that you can afford, so you are far more likely to be able to afford luxuries.

Furthermore, and worst, chapter 13 bankruptcy, even though you are paying off your debt, is still bankruptcy. And bankruptcy is the single worst thing that you can do to your credit record. Debt consolidation, by contrast, actually helps your credit score. Unless you default on your consolidation payments, you will not have a single strike on your credit score. And, typically, the consolidation company will be able to bargain down the amount of money that you owe, so you will also be paying less money that way. This is really a no-contest.

Finally, by researching and comparing different debt consolidation companies, consumers are able to determine the company that meet your specific financial situation, moreover, besides the cheaper interest rate the market of debit consolidators is offering. For Instance, read our latest debt consolidation company review: LowerMyBills Review.

Nonetheless, it’s recommendable working with a trusted and reliable debit counselor before making any decision, this way you save time because of specialized advise and money by getting better results in a reduced period of time.

Hector Milla is editor of the Government Debt Consolidation Loans website – where you can see his best rated debit consolidator service recommendation.

Find free online debit consolidation suggesting & poor credit debit management advise respectively. Your Welcome To Visit Us.

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Thinking About Filing Chapter 13 And Doing Debt Consolidation?

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