The primary distinction between Chapter 7 and Chapter 13 is that Chapter 7 does not mandate the filing of a repayment plan. The primary reason a person would file for bankruptcy is to repay some or all of their outstanding debts and start over. Certainly, it is a good concept, but there is much more to it. In some jurisdictions, filing for bankruptcy could result in the loss of one's home, which is a serious matter. This is essentially compensation for having all outstanding debts settled.
Always consult a financial advisor or credit specialist before committing to something as significant as bankruptcy. Even when creditors are on your back and you receive so many phone calls that you cannot even answer them, it is best not to hurry into anything you are unsure of.
A professional financial advisor will take the time to evaluate your current circumstances and inform you of your best options. There is no way for the average person to comprehend the various paths available to them and how each will impact them in the long term.
Whether you decide to file for bankruptcy in the future or not, the most essential action is prevention. The last thing you want is to find yourself in the same debt situation again. In some instances, a person will file for bankruptcy multiple times and never be able to restore their credit because they keep incurring new debt. Utilize your credit cards prudently. If you have credit cards, limit yourself to one or two and only use them to establish your credit; never exceed your credit limit. The ideal strategy is to only use your credit card when you have sufficient funds to pay it off a few days later.
For some, but not all, bankruptcy is a wise choice. If you only have a few debts to pay, you may wish to pursue a debt consolidation loan or another less severe option.""
" - https://www.affordablecebu.com/
