Bankruptcy Help - Information

Welcome to the bankruptcy help page. We are here to provide people, who are thinking about filing bankruptcy, the information he or she needs to make an informed decision. You will then have a good understanding of what the bankruptcy laws allow.

If you file for a Chapter 7 Bankruptcy it helps wipe out all of a person's eligible debts usually within four months. In the vast majority of cases the debtor has no assets that he or she would lose. Chapter 7 gives a person a relatively quick "fresh start".

Alternately, you can file for a Chapter 13 Bankruptcy which is for people who want to pay off part of their debts over a period of three to five years.

Below are a list of companies that help you decide whether or not you really want to file for bankruptcy. They offer different ways of repairing your credit or erasing bad debts to the point where you may not have to file for bankruptcy at all.

Remember, bankruptcy is a last resort after you have exhausted all possible options. Have you tried everything yet?

Options to Stay Out of Bankruptcy and Regain Your Dignity

There are many great options available other than bankruptcy and still maintain your financial future. Have you tried all of these things yet?

Repayment Plan - When your current lender allows you to pay a certain amount per month on a fixed schedule which is lower than your current payment amount. No additional credit is allowed, but a repayment plan can convert ultra-highl floating interest rates into lower fixed rates with a defined repayment schedule.

Loan Modification/Restructuring - This is especially popular with Adjustable Rate Mortgages (ARMs) that have "ratcheted" up on their original rate increase schedule. The lender agrees to modify or restructure the loan terms to reduce current interest due and "flatten" the escalating rate schedule. Often the loan duration is extended to lower payments.

Loan Refinance - When you obtain a new loan from your existing or a different lender at more favorable terms, and use the refinancing loan to pay off the original loan. You should always try to refinance when interest rates drop if the fees aren't too high.

Forbearance Agreement - The lender agrees to "forebear" or give up the right to receive payments for a period of time while you recover financially, go to school, etc.

Redemption - When you lose a home and have the right to reacquire it by paying off the mortgage lender who foreclosed. This right may last for up to a year or more in certain states, giving you the ability to get your home back - even if it's been sold!

Reinstatement Plan - When you have been put in a state of default by your lender for not paying, but the lender agrees to reinstate your old loan terms if you begin to pay again.

Pre-Foreclosure Sale - Selling your home or auto during the period when you are in default, but have not yet suffered a foreclosure judgment, in order to pay back the lender and avoid foreclosure.

Short Sale - When the lender agrees to accept less than the full amount in repayment of the loan and allows you to get out of a mortgage without suffering foreclosure.

Deed in Lieu of Foreclosure - When you formally transfer title of the property back to the mortgage lender instead of having to pay back the mortgage in cash. A formal way of "mailing back the keys" to the bank!

As you can see, there are many, many options you probably aren't aware of to help stay out of bankruptcy.