There are alternatives to Chapter 13 bankruptcy in California. While this unusual approach to bankruptcy offers many advantages, there is another method of resolving your debts that can preserve your possessions and return your credit score to a decent level in less time. Debt settlement can even save you money in the process. It will certainly save you the legal headache that any form of bankruptcy will require.
What Is Chapter 13 Bankruptcy?
There are various forms of bankruptcy. The kind that most people imagine when they hear the word is probably Chapter 7. This completely relieves a person from an oppressive level of debt. The potential drawback in a chapter 7 bankruptcy is the loss of personal possessions such as cars and home.
Chapter 13 bankruptcy differs significantly from a Chapter 7 bankruptcy. People with high credit card debts often find this option attractive because they can get out from under the huge debt payments that they are making every month without losing significant possessions. This solution does not erase debt like the Chapter 7 option does. Instead, a Chapter 13 bankruptcy reorganizes debts so that debtors can manage monthly payments and avoid aggressive collection tactics and seizures of property.
However, there is more than one significant drawback to this route to freedom from debt. It does incredible damage to your credit report. It may be as long as 10 years before the record of this resolution is erased from a debtor’s credit rating. In the meantime, this individual will have a very difficult time securing a loan of any sort even though credit cards may be willing to work with them at high rates.
What Is Debt Settlement?
Debt relief professionals offer one of the best alternatives to Chapter 13 bankruptcy in California. They negotiate on your behalf directly with credit card companies. The end result of these negotiations is the closing of your accounts and the end of your credit card debts.
However, this solution is not an erasure of debt. You do actually make the effort to resolve your debts with a legitimate form of debt settlement through. In addition to actually paying a significant portion of what you owe, you can also close your credit accounts completely and get your credit score back up to normal with just a few years.
It all begins when you contact us and explain your debt problems to them. They will tell you which debts qualify for their assistance. If you accept their help, you can stop servicing your debt immediately and get started down the road to debt freedom as soon as you hang up the phone.
Instead of paying your credit card companies every month, you will send a single payment to your debt consolidator. Ideally, this payment will be smaller than the combined total of your usual debt payments.
With evidence of these settlement funds, debt negotiators will try to get your creditors to accept a lump sum payment in exchange for canceling your account. Many people like this approach because it allows them to pay something of what they owe and erase some of the guilt you may feel for not paying your obligations. Creditors usually prefer this solution to a long, drawn-out battle trying to secure full payment or a resumption of smaller, monthly sums.
Over the course of 24 to 48 months, most people in this situation will see their debts erased. By the end of this period, their credit rating returns to a normal level after a few years of very low scores. In fact, many people begin to receive new offers of credit as soon as they are done with settlement.
Debts That Qualify for Debt Settlement
Only unsecured debts qualify for debt settlement through this company. Candidates include credit card debts and medical bills among others. Secured debts, such as house and car loans, are usually off-limits for this type of debt resolution.
If you think that this approach appeals to you more than other alternatives to Chapter 13 bankruptcy in California, then contact us as soon as possible. You can relieve your debt worries completely in just a few years. A debt analysis is quick and completely free.