For them, bankruptcy is a total loss. To strike an equilibrium, in 2005 a law was passed making bankruptcy proceedings more difficult. After the passage of this law, a person who wishes to abandon his debts cannot do so readily. Instead, he or she must undergo months of intensive credit counseling to determine their ability and capacity to pay. If you are eligible for a bankruptcy petition, your credit counselor will recommend it. It is not your fault, so you should seek assistance to ensure that you qualify for credit card bankruptcy.
If they reject your request, there is nothing you can do. Remember that bankruptcy decisions are kept active for ten years, making it nearly impossible to obtain a loan or credit.
The law permits two types of prevalent bankruptcies: chapter 7 and chapter 13 bankruptcies. Chapter 7 permits a complete discharge of debts. It eliminates your debts entirely. The good news is that you have the option of reaffirmation prior to the court's decision. This is what you must do if you do not want a creditor to possess your property. You reaffirm your obligation to repay the debt within the agreed-upon timeframe. You will no longer have to deal with creditors and their collection agents, allowing you to continue on with your life.
If you are recommended for chapter 13 and the court rules in your favor, you will satisfy your debts within the specified timeframe. A portion of your salary would go toward debt repayment. The good news is that once you have filed for credit card bankruptcy, nobody can harm you. You have the court-ordered amount of time in your possession, so you have purchased peace of mind and freedom from collection concerns. But for this to occur, you will need professional assistance to actively engage the court in your favor; otherwise, the creditors' terms will be implemented instead of yours. If you are struggling with debt, get assistance immediately and eliminate it for good.""
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