Should I file Chapter 7 bankruptcy or do Credit Consolidation?

Question

I have good credit but too much debt. Which one would be better?

Answer 1

Always bankruptcy as a LAST resort, it kills your credit for a couple of years

Answer 2

This is impossible to answer based upon the limited info you provided.

Answer 3

As bankruptcy will remain on your credit report for mare than 10 years and if the individual is listed as having filed for bankruptcy, it results in a 160-220 point deduction on their credit score and if a delinquent account is added to the individuals credit file, 70-120 points are subtracted. During the period of bankruptcy and after bankruptcy you would face difficulty in getting loan, purchasing and leasing and building your credit.

So its best to pay off your debts as not now you can expect your credit score to raise in few years. If you are finding difficulty in managing your debts you can always go for a debt consolidation company. They can help you paying off your debts by contacting your creditors and negotiating on your behalf to reduce you debts. After that they would provide you with an affordable debt management plan wherein you have to pay only one monthly installment.

Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference

Answer 4

Chapter 7 bankruptcy is the commonest denotation of bankruptcy. It stands for waiving or canceling of debts that you have incurred. As an individual, you can select between Chapter 13 or Chapter 7 bankruptcy. Selecting between the two is not easy. The bankruptcy court will study your circumstances before deciding which type of bankruptcy is applicable to you.

The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.

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