Bankruptcy - Alternatives, Credit, Debt, Law, Process & Types (2024)

FAQs

Bankruptcy - Alternatives, Credit, Debt, Law, Process & Types? ›

Debt relief can involve debt settlement, debt consolidation, or credit counseling. Bankruptcy is a court-supervised legal process for individuals or businesses to eliminate their debts or repay them over time.

It's much more affordable than some other solutions, such as Bankruptcy. You won't have to pay an application fee. If your circ*mstances change, your DRO could be revoked. This means you'll need to repay everything you owe, including any accrued interest and charges.

Or somewhat more accurately, Chapter 13 can give you more power over and flexibility with certain kinds of creditors, and if you have non-exempt assets. However, if you do not have those kinds of debt or assets, or not much in terms of tangible assets, then Chapter 7 would likely be the faster and easier option.

Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal ...

Debts not covered by a DRO

child support and maintenance. student loans. social fund loans.

Disadvantages of Debt Relief Orders

If your circ*mstances change, you may still be required to repay your creditors. Your debt relief order will appear on your credit file for six years. This may affect your ability to get credit in the future.

Is the national debt relief program legit? ›

Is National Debt Relief legit? National Debt Relief is an accredited member of the American Association for Debt Resolution (AADR). It has been around since 2009 and has helped over 600,000 individuals reduce their debt. It also has an A+ rating from the BBB (Better Business Bureau).

You can probably keep your checking account in Chapter 7 bankruptcy if you don't owe money to the bank. However, keeping the money in the account could be more challenging. Most banks will let you keep a checking account open when you file for bankruptcy (check with the institution).

Founded in 2008, National Debt Relief is a debt settlement company that negotiates the reduction of unsecured debt. If you have over $7,500 in unsecured debt, NDR may be able to cut that amount in half.

Types of Government Debt Relief Programs

The government isn't generally in the business of offering debt relief programs for most types of unsecured debt, such as credit cards and personal loans.

Chapter 7 is your better bet if you are hopelessly awash in debt from credit cards, medical bills, personal loans, and/or car loans and your income simply cannot keep up. As noted above, you're most likely going to get to keep most of your assets while erasing your unsecured debt.

Before you file, consider your options, including debt settlement, selling unused assets or tapping your home equity. Many credit counselors and bankruptcy attorneys offer a free initial consultation to explore options and determine the best path forward.

As discussed above, an ABC can be an advantageous means for a buyer to acquire assets and/or a business in financial distress. However, unlike in a bankruptcy case, because the ABC process in California is nonjudicial, there is no court order approving the sale transaction.