Hard and fast answers that are true in every situation can be difficult to come by in the law. Usually answers to questions depend heavily on the particular circumstances that you find yourself in. Still, we understand the value of being able to find some general guidance to run with. With that in mind, here are a few of the most common questions people ask us every day. If you want answers for your specific situation, Take the Next Step and call us.
The two most often used chapters to relieve debtors from consumer debts are Chapter 13 which allows you to repay a portion if not all of your debts over a period of three to five years, or Chapter 7, which provides for a liquidation of your debts.
1. Pay your debts under the contract terms.
2. Try to negotiate with your creditors to get more favorable payment terms.
3. Use a debt management plan through a reputable credit counselor.
4. Borrow money either to pay the debts in full or to try and settle the debt for a portion of the balance.
5. Do nothing.
Each of these options has its benefits and drawbacks:
Chapter 7 FAQs
Chapter 13 FAQs