Get Rid of Your Debts with Bankruptcy Debt Consolidation

What is bankruptcy debt consolidation?  It is commonly known as chapter 13 bankruptcy.  You can lower your total debt payments, like credit card and medical debts, by consolidating your debts.  There are many debt consolidation companies, but a lot of them will rip you off and none of them can give you the legal protections you get from bankruptcy.

However, you can use chapter 13 bankruptcy as a debt consolidation without the fear of being ripped off by a dishonest company.  Filing chapter 13 bankruptcy is much better than paying a debt consolidation company for several reasons.

Filing a chapter 13 bankruptcy gives you legal protections against your creditors: they are not allowed to try to collect debts by calling, writing, or any other means; they are not allowed to foreclose your home; and they are not allowed to repossess your car.  Another advantage of filing chapter 13 bankruptcy is that you can probably reduce the amount you owe by a substantial amount on debts like credit cards, medical bills, and older car loans, and you can eliminate older tax debts, all without having to bargain with your creditors, though this is different in each case.  You can also get rid of underwater junior mortgages, known as lien stripping.

If your debt problems are only unsecured debts like credit card and medical bills, you could eliminate those debts with a chapter 7 bankruptcy.  However, chapter 7 has income limits and does nothing to fix problems with car loans or mortgages.  If you make too much money for chapter 7 bankruptcy or if you need help with a car loan or mortgage, then chapter 13 bankruptcy would work as a debt consolidation without you having to worry about getting ripped off.

In a chapter 13 bankruptcy you will have up to five years to pay off your debts, and you may be able to substantially lower the amount that you owe.  You would make one monthly payment to the chapter 13 trustee, who will pay your creditors the percentage to which they are entitled under bankruptcy law.  When you are finished paying after five years, all of your dischargeable debts like credit card and medical debts will be eliminated.

If you are considering a debt consolidation, contact a chapter 13 bankruptcy attorney today.  You will get the benefits of debt consolidation without the worries about being ripped off and you will get benefits that you won’t get from a debt consolidation company.