There are very few “quick fixes” that will solve complex financial challenges. Anyone who attempts to sell you on a “quick fix” is likely attempting to scam you out of even more money than you already owe. With that said, there are several debt relief and debt management solutions that regularly allow debtors to get a better handle on their debt and, in some cases, allow them to have certain balances eliminated. For example, some individuals struggling with credit card debt choose to use a balance transfer to consolidate their debt into a single account. Doing so can make paying that account down more manageable than it is to juggle several card payments at once. Other individuals struggling with debt choose to enter into debt management plans supervised by nonprofit, accredited credit counseling agencies. Doing so helps to restructure debt. Those who are looking to have some of their outstanding balances eliminated outright (without paying a significant portion of their balances upfront) must generally turn to bankruptcy for true debt relief.
Bankruptcy – Chapter 7 vs. Chapter 13 Discharge
Both Chapter 7 bankruptcy and Chapter 13 bankruptcy afford filers the opportunity to have eligible, unsecured debt balances “discharged.” A bankruptcy lawyer that the Memphis, Tennessee community trusts, such as one from Darrell Castle and Associates, PLLC, can tell you that in the bankruptcy context, a discharge order means that a debt is effectively eliminated. Once a debt is discharged, the debtor can never be held accountable for a failure to repay it and creditors can never again demand repayment of it. The primary difference between Chapter 7 bankruptcy discharge procedure and Chapter 13 bankruptcy procedure is that, in a Chapter 7 bankruptcy, filers are not required to repay ANY of their eligible balances before a discharge order can be successfully entered in regards to those balances. By contrast, Chapter 13 filers are required to make manageable installation payments on the whole of their debts for 3-5 years before any remaining eligible balances can be discharged by the court.
Chapter 7 bankruptcy is a far more generous debt relief option because it is only made available to the lowest wage earners in American society. The court reasons that these filers cannot be expected to repay their debts over time, whereas Chapter 13 filers can be expected to repay a reasonable, manageable portion of their debts before the remainder are discharged.
Legal Assistance Is Available
If you have not yet formally explored your debt relief options during a risk-free, no-obligation consultation appointment with our firm, please do so today. Speaking with an experienced bankruptcy lawyer will allow you to ask questions about the process and to receive feedback unique to your circumstances. Filing for bankruptcy isn’t the best option for everyone. However, this debt relief option has proven to be life-changing in the best possible ways for many people. In order to better ensure that your decision to either file for bankruptcy or to refrain from doing so is an informed one, schedule a confidential consultation with our firm today. We look forward to speaking with you.