Filing bankruptcy got a lot more difficult in the past few years, so much so that many people need to turn to debt management credit counseling services before they can file. The government recently put in place some pretty strong laws that are aimed at stopping abuse of the bankruptcy proceedings.
Now, you cannot file multiple bankruptcies within a short period. You also have to qualify for Chapter 7 bankruptcy, which is total discharge. The qualifications are also very strict. Now, those that may be able to work through Chapter 13, which is debt restructuring are being made to do so. What is this and can it be something beneficial to you?
As you consider what happens in Chapter 13 bankruptcy, you may notice that it is a lot like using debt management credit counseling. You will work with an organization (sometimes the same debt management credit counseling services you would have used anyway) to develop a repayment plan. Costs are often dropped, fees reduced and a new repayment plan is put into place that allows you to pay off your debts in a certain amount of time. The lenders and the borrowers come together in such a way as to protect everyone involved and get the debt paid off as soon as possible.
Many people are being told they have to use a debt management credit counseling company to repay their debts before they can file bankruptcy. In doing so, they will be able to repay their debts faster and keep from filing full discharge all together. Of course, this also benefits the lenders, which is an important part of maintaining the help of the lending institutions.
With these services in place, many people are able to work through their debt rather than simply write it off. If you are unsure if you need to use such a service, the best person to talk to is your attorney. Attorneys are now obligated to be sure that you qualify for bankruptcy and if not will give you help in debt management credit counseling you may need.
If you want to avoid the black mark of bankruptcy (including that which comes with Chapter 13) then you do want to consider working directly with a debt management credit counseling company. It will only take a few minutes to find out if you qualify and they can tell you (without a cost to you) if bankruptcy is a better option for you. Contact a counselor today to ask them what your options are. You may be able to learn all about your own unique situation.