Bankruptcy Or Debt Settlement: Which Is The Right Option?

The purpose of both of these methods of debt repayment are the same; to lift the weight of debt without having to pay it in full. However, their respective terms and consequences are quite different. For example, filing for bankruptcy is a complex matter today, while settlement offers no guarantees.

During your repayment years, you'll also have to complete financial counseling. Additionally, you can't get into further debt, which means you get to start off with a clean slate when all is said and done.

The effects of the new law make the process of filing for bankruptcy more complex, requiring attorneys to specialize in North Carolina bankruptcy law. To completely understand how the new bankruptcy laws in your state can impact your debt and affect your life, speak with a local bankruptcy lawyer. If you live in North Carolina, you want a North Carolina bankruptcy lawyer who understands how the law effects you. To get in touch with a North Carolina bankruptcy attorney who will take your case from start to finish, contact the attorneys at The Law Offices of John T Orcutt or visit Behind on bills? Running out of options? Attorney John Orcutt has helped 40,000 families. Call 1-800-899-1414 for a free consultation. Ask about our $99/mo plan.

However, declaring bankruptcy under Chapter 13 implies it is possible to ask for to restructure your current debt, which the court will assist in on your behalf, as long as you meet particular conditions. Usually, the restructured payments are spread through a five year period, and the case will likely be handled by a bankruptcy trustee appointed by the courts.

Every effort needs to be made to keep from going down this route. There are many ways this can be done. New arrangements can be sought for repayment. These will often involve a bundling together of bills into one large schemes that features lower interest and longer lengths for paying off the totals. These two processes together produce a lesser premium that may be bearable to the borrower.

Once you receive notice of a bankruptcy, it does not matter if you have not already received the funds directly. For example, if you had the sheriff levy the debtor's bank account the day after they filed for BK, it is your duty to take any actions required to make sure the funds are returned to the debtor. In a levy situation, you would inform the sheriff in writing of the BK, and ask them to return the funds to the debtor.

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This is a restructuring and debt repayment plan for people who have a normal income source. In contrast to Chapter 7, it doesn't entail liquidation of assets for the payment of financial obligations. The debtor is actually permitted to keep ownership of his or her properties. However, it involves a lengthier, far more complex and costly process than straight bankruptcy.