How Chapter 13 Bankruptcy Lowers Credit Card Debt


Uncontrollable credit card debt has led many American citizens to look for a way out that really works. While some individuals resort to debt settlement programs, others favor the complete judicial protection that is offered by Chapter 13 Bankruptcy. Chapter 13 Bankruptcy assists US consumers to lower their monthly payments on credit card debt. You can become debt free simply within 3-5 years with complete judicial protection. Individuals who have non-exempt assets like rental properties frequently opt for reconstituting their credit liabilities throughout a 3 to 5 year period for the purpose of lowering the monthly payments. At the same time when there would be a negative impact on their FICO scores for up to seven years, those who are facing severe financial difficulties can become debt free.

The Distinction Between Chapter 7 and Chapter 13 Bankruptcy

The main distinction between Chapter 7 and Chapter 13 bankruptcy is that the second permits a consumer to hold non-exempt assets. A consumer is required to surrender any valuables to a trustee if he files for bankruptcy under Chapter 7. Others look for Chapter 13 safeguard regarding car, home and student loans. For taking the advantage, the debtors are likely to make monthly payments for the amount payable to the creditors.

How Long Would It Take to Eliminate Credit Card Debt?

It depends on the amount due. Chapter 13 Bankruptcy, which is also known as a wage earner plan, would let a consumer to rearrange his credit card debt throughout a 3-5 year time period. Monthly payments would be directed to bankruptcy trustee on the basis of the amount of free money that he has. As soon as the debt solution is abided by, any left over obligations are cancelled and the consumer becomes entirely debt free.
These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google
  • Furl
  • Reddit
  • Spurl
  • StumbleUpon
  • Technorati

11 Responses to this post

  1. Anonymous on April 1, 2011 at 11:22 PM

    Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I'll be subscribing to your feed and I hope you post again soon.



    Web Design

  2. 1966 Ford Mustang AC Compressor on June 25, 2011 at 6:49 AM

    I just came across your blog and found it be really helpful in my evaluation

  3. sheena on September 12, 2011 at 1:59 AM

    Isuzu FRR Truck Turbo

    This is a better-quality article as they all are. I make fun of been wonder wide this an eye to some beat now. Its great to receive this info. You are fair and balanced.

  4. Business Cash Advance on November 16, 2011 at 1:31 AM

    This post is awesome..i've been reading tons of crap posts from other blogs, but shows you have a more educated reader base.

  5. sheena on November 30, 2011 at 10:01 PM

    Thank you for sharing valuable information. Where else could anyone get that kind of information in such a complete way of writing? I have a presentation incoming week, and I am on the lookout for such information.

    Chevrolet W7M Turbo

  6. Books on April 13, 2012 at 12:11 PM

    still confusion between liquidation and bankruptcy.

    college textbooks

  7. Jennifer on January 3, 2014 at 2:59 AM

    Debt can handle with any debt company with the suitable solution.Your article is great.I love that

  8. isabella jarosz on July 25, 2017 at 3:38 AM

    I found the blog some what interesting in its content wise and easier to understand what they had said. I love if you publish the blogs often.
    Title Loans
    Title Loans in Alabama
    Title Loans in Mississipi
    Title Loans in South Carolina

  9. kristina young on August 16, 2017 at 3:29 AM

    I found the blog some what interesting in its content wise and easier to understand what they had said. I love if you publish the blogs often.
    Pawn Shops in Alabama
    Pawn Brokers
    Pawn Loans
    Pawn Loans in Alabama
    Pawn Shops near me

  10. kristina young on September 18, 2017 at 7:55 AM

    I found the blog some what interesting in its content wise and easier to understand what they had said. I love if you publish the blogs often.
    Wanna get pawn loans in Montgomery,Birmingham or Mobile, Alabama, US...
    Pawn Shops in Alabama
    Pawn Shops near me
    Pawn Shops in Montgomery
    Pawn Shops in Birmingham
    Pawn Shops in Mobile

  11. kristina young on October 11, 2017 at 3:48 AM

    Thanks for spending your valuable time in delivering the most valuable content here.I loved the way you write and suggest my friends too for getting aware of your blogs.

    Pawn Shops in Midfield

    Pawn Shops in Tuscaloosa

    Pawn Shops in Pelham

    Pawn Shops in Hoover