Although there are many debts settlement companies that can help you to reduce your debt you may find that you need to actually go one step further and file for a chapter 7 or chapter 13 bankruptcy. In the US debt settlement is really the only alternative to bankruptcy so if you cannot make settlement negotiations work then you may want to seriously consider filing for the most appropriate types of bankruptcy.

You may find that a debt settlement company can help you with your debt problems if your situation can be resolved by the reduction of your credit cards and other debts by about 50% or more. However, unless you situation meets certain criteria you may not be accepted into a debt settlement program.

If you have recently lost a job or a substantial amount of income in your family you will need to decide which course of action to take, as inaction is not an option. If you feel you have no other choice and just do not have the money to make ends meet you may need to face the prospect of being bankrupt. This is a decision that will need to not be taken lightly as there are many consequences with the filing of bankruptcy that could affect your credit more than a debt settlement company would.

If you are considering filing for bankruptcy you will want to know what your options are and how to decide which chapter of bankruptcy you need to file. A lawyer can help with this but you will want to read on in order to get a better idea as to how the different choices will affect you and your assets. You want to be prepared for you what you are getting into.

In order to file a chapter 7 type you will want to know that you have to have very little income and can barely pay your monthly living expenses. You will need to have very little assets to take advantage of the chapter 7 bankruptcy as this is typically a discharge of all of your debts. This is the quickest way to file as you will be discharged in about 3-5 months. Creditors will not be able to contact you while you are in the automatic stay phase.

There are some more stipulations for a chapter 13 bankruptcy than there are for a chapter 7 regarding your assets and property values, as you cannot own more assets worth certain limits. This bankruptcy debt will allow you to keep all of your assets and give you three to five years to make payments on your past due debts. Your payments will be made once a month to your trustee who will in turn pay all of your debtors out of that payment in order to ensure your payments will be up to date at the end of the three to five years. During the agreed period of time your creditors will not be able to make contact with you regarding the debts you have obtained.

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Read more about bankruptcy debt on K D Garrow's website on how to pay debt off, which offers free advice on many debt related issues, including using a debt attorney, recommended debt settlement and debt management companies, how to negotiate debt yourself, medical debt, student loan debts, budgeting and loans.