Debt Consolidation Or Filing Bankruptcy
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One of the most frequent questions bankruptcy lawyers are asked by potential clients is whether they should file bankruptcy, or use a debt consolidation company to make payments towards their liabilities. But what about people who have the facility to make some monthly payments to their creditors and do not qualify for chapter 7?

Their first bankruptcy option in many cases is Chapter thirteen, which allows for, usually, a partial repayment of the debt. Supplied with this choice, the majority decide that debt consolidation, rather than filing a Chapter 13 bankruptcy case, is their perfect solution. However, this is kind of never true. Relying on assorted factors--primarily your income and expense-- you can get a discharge of your obligations in a Chapter 13 case paying back anywhere from 0% to a hundred percent of your unsecured debts for 36-60 months.

If doing debt consolidation? Because you don't have to pay for interest increase on unsecured debts in a Chapter 13. Even under the best consolidation deal outside of bankruptcy there's going to be interest paid.

So if you are in a position where you will have too many assets or earnings to qualify for a Chapter seven case, but are having trouble managing your standard payments on your mastercards or other unsecured loans, you must check with a bankruptcy lawyer about the possibility of filing a Chapter 13 case. You very well may be ready to pay off all your unsecured loans with cheap regular payments in less than 5 years!
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