Bankruptcy filed under Chapter 13 gives men and women a variety of pros over liquidation under CH 7. Maybe most significantly, chap 13 offers men and women a chance to protect their homes from foreclosure. By filing under this chapter, consumers can stop foreclosure proceedings and may fix over due mortgage payments over time.
Majority of people get into debt at one time in their life or another. This happens mainly when one misses a payment on their credit card or any other monthly payment agreement. Once a payment is missed it can be difficult to find the funds to pay a past due balance as well as what is owed for that month. Many people have even gotten so behind on their debt that filing for bankruptcy is necessary.
Many people struggle with difficult financial times and choose bankruptcy as a way out of their problem. Bankruptcy can be a way to put an end to financial hardship but in some cases it is not the best option. There are other alternative that can be tried that may help you avoid bankruptcy.
An Individual Voluntary Arrangement, or IVA, is a financial agreement which legally binds both you and the entities you owe money to. Depending on how you are holding up financially, and how much you still owe on your debt, the amount of your payment may vary. The length of time you are allotted to pay the amount back can last for up to five years. After you complete the full term of payments the rest of the debt you owe is then considered to be legally settled.
For those who have had to declare bankruptcy, you already know that this is one of the most damaging marks that you can have on your credit report. Many creditors consider it a „deal-breaker“ when considering credit applications.