Filing a bankruptcy petition is not something that most people look forward to. In fact, most consumers dread the experience. The thought of being declared bankrupt is too much for some people to bear. However, becoming bankrupt is sometimes the best option for dealing with a serious debt problem. In that regard, getting bankruptcy advice online is recommended because of its cost effectiveness as well as the confidentiality it offers.

The only debt settlement methods available to individuals who are deep in debt include chapter seven and chapter 13. These are only for individual debtors. Businesses and corporations can apply for chapter seven or chapter 11. A professional debt adviser should be able to explain the shortcomings, requirements and shortcomings of each of these options.

Bankruptcies have a number of benefits. For one, they can help stop creditors from hassling you. Secondly, you will get the protection of the court from collection agencies and financial institutions. Your debts will also be reduced or written off completely. This can help you to start life afresh without any debt. There are many other benefits that are offered by the different types of bankruptcies.

Chapter 7 is arguably the most popular legal method for getting rid of debt. It is simple in the sense that, part of the debt is repaid using money recovered from the auctioning of assets. Any other unpaid debt is written off after the process. A trustee is usually in charge of the whole process. The option is best suited for debtors who have lost their only source of income.

Chapter 13 is very convenient since there is no auctioning of property. Usually, debtors are required to come up with an acceptable payment plan to offset the debt. To qualify for Chapter 13, the debtor needs to have a reliable source of income. When financial institutions want to repossess or foreclose on property, this chapter will effectively put a stop to their actions. The drawback of this option is that liquidation of assets will take place the moment the debtor fails to honor his or her obligations as indicated on the payment plan.

One of the most important pieces of advice that anyone can ever give you is that this option has some drawbacks. For instance, not all debts are forgiven. Student loans, alimony and child support must be paid no matter what. This means that even after having your belongings auctioned, you will still be required to pay child and spousal support every month. Another negative effect of bankruptcy is that it can damage your credit rating. The entry will appear on your report for nearly 7 years.

To get the protection of the court, all you need to do is file a petition with the appropriate court. A professional petition preparer can help you with this. Alternatively, you can hire an attorney to offer assistance.

If your are an individual, a business or an institution, becoming bankrupt is always an option. Since the court cannot oversee the process directly, a trustee is often appointed to act in the best interest of the law. This is a neutral party that is mandated with scrutinizing petitions. This is the person that will advice the court to either reject or approve the petition.

You can visit www.financialpage.org for more helpful information about Why Getting Bankruptcy Advice Online Is The Best Option.