Should I File for Bankruptcy or Debt Relief?

File for Bankruptcy Should I File for Bankruptcy or Debt Relief?

Should I File for Bankruptcy or Debt Relief?

When it comes to the point that you realize something has got to give with your finances, you begin to look into what to do. Filing for bankruptcy has its own set of drawbacks and benefits, but what about debt relief? Read on to find out the major differences and how filing bankruptcy can help!

DoNotPay can help you file for bankruptcy and guide you through your decision-making process. Filing for bankruptcy has never been easier than the system DoNotPay has developed. Avoid lengthy meetings and uneducated steps in the wrong direction as DoNotPay walks you through every step!

What are Debt Relief Programs?

Companies that provide debt relief services will negotiate on your behalf to begin repayment plans with your creditors. Keep in mind they do not work with all creditors and can not prevent the creditors from filing lawsuits. They simply provide a conduit that you pay either once a month or out of each paycheck and disburse funds when a payoff is available in the amount agreed by the creditor. It can take months to years to finish the payoffs, and it can also impact your credit history!

What is Bankruptcy?

If you are constantly being garnished from your wages and receiving phone calls from creditors at all hours of the day or night, you may want to consider declaring bankruptcy. Bankruptcies exist in a number of forms, but the most common are Chapter 7 and Chapter 13.

Type Of Bankruptcy:Details:
Chapter 7Chapter 7 liquidates any non-qualifying assets in order to repay secured debt and discharge unsecured debt.
Chapter 13Chapter 13 bankruptcy is more of a court-ordered repayment plan. Both of these safeguards are intended to protect your earnings against future wage garnishments and phone calls. On the other side, the court may impose wage garnishments, but they will be restricted to the amount of money you earn.

What Bankruptcy Cannot Do

Bankruptcy can provide a shield for you to hide behind while you get your finances back in order.  Although it does stop further collection from creditors individually, it does not completely delete it from the record. However, it can not stop the child support, alimony, and other court appointed and government deductions from your funds. It's not a get out of debt free card!

How Long Does it Take to File for Bankruptcy?

During the five months, it takes to confirm a bankruptcy you will be busy gathering information, waiting on hearings, and waiting on judicial approval. Then you will learn exactly how the courts have determined to proceed with either liquidation of your assets or your payback plan. Prior to the liquidation, all of your creditors will be notified and given the opportunity to make claims against you. Be aware that bankruptcy will remain on your credit record for seven to ten years!

How to file bankruptcy on your own

In most circumstances, bankruptcy attorneys are consulted to determine a person's eligibility for, kind of, and timing of bankruptcy. Everything, like the 609 letter and the debt verification letters, are put together by your lawyer once you pay the retainer charge as well as any filing expenses. You cannot proceed with your bankruptcy unless you begin making payments to the Trustee. Additionally, you will be expected to complete various financial lessons prior to being confirmed.

File bankruptcy with the help of DoNotPay

A bankruptcy filing should not require several days off work or further financial loss. DoNotPay may be able to help you in filing for bankruptcy quicker than a lawyer's office!

How to file for bankruptcy using DoNotPay:

If you're not sure where to begin when it comes to filing bankruptcy, DoNotPay has you covered in five simple steps:

  1. Search for File for Bankruptcy on DoNotPay.


  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.


  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.


  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.


  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.


And that's all there is to it!

Once done, the court will give you:

  1. Your bankruptcy case number
  2. The name of your bankruptcy trustee
  3. The date, time, and location of your meeting with your trustee

Your case has been submitted at this moment! Congrats! You are now protected from any debt collectors by the automatic stay. Your trustee will then call you to request further financial records. Attend your meetings and finish the post-bankruptcy debtors course!

Why Use DoNotPay to file bankruptcy

When it comes to bankruptcy, DoNotPay may provide a variety of services. DoNotPay may be able to assist:

  • DoNotPay is available almost everywhere. They collaborate with all bankruptcy courts.
  • The filing and response times are lightning-fast.
  • A secure location to store all of your vital papers, along with everything you need
  • To get the greatest results, just follow these guidelines.

What else can DoNotPay do?

Have you received a satisfactory resolution of your bankruptcy case? If you want to save even more time and money, the following information from DoNotPay may be beneficial:

Utilize DoNotPay's aid throughout this tough moment!

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