In order to get rid of debt people either go for a debt negotiation program or file a bankruptcy.
If you ask a financial expert that which one of these is better than the other then most likely he will give you an ambiguous answer.
The truth is that the effectiveness of these processes depend on your financial situation.
For a certain person bankruptcy might be the best option available but for another it might be actually harmful.
In this article we will compare bankruptcy with debt negotiation in order to find the better among the two.
Creditor Harassment: If you go for bankruptcy then law will take responsibility to protect you from creditor harassment.
Once a bankruptcy has been filed successfully a stay automatically becomes effective and your creditors can then make no efforts to retrieve their money without violating the law.
They can not ask you for money via phone, letters or anything else.
On the other hand no law can prevent them from doing this in case of debt negotiation.
The immunity offered by bankruptcy can be a big plus for you if you are already depressed because of growing demands of your creditors.
Privacy: If you go for bankruptcy then hardly anyone will find out about it.
But if someone really wants to then he can.
On the other hand there is absolutely no way of finding out about a debt negotiation program.
Effect on Credit Scores: Credit scores are very important for getting loans.
Unfortunately, after going through a bankruptcy credit scores get hurt pretty badly.
Discharged debts stay on a persons credit reports for a time period of 7 to 10 years after the bankruptcy.
However if you take good care of your finances then the scores will start improving within a few weeks.
Some creditors are of the view that people gone bankrupt are actually better for lending purposes because they have no debts and they can't go bankrupt again.
Tax Effects: A bankruptcy in Tampa doesn't require you to pay extra money in taxes but a debt negotiation program does.
This can prove to be an extra burden on people who opt for debt negotiation.
Repayment: Chapter 7 bankruptcy wipes out all the debt and no repayment is required.
Chapter 13, however, requires a person to make regular payments on monthly basis for a time period spread over years.
That is why a person needs to earn a specific amount of money, higher than his expenses, each month in order to be eligible for Chapter 13.
Both debt negotiation and bankruptcy have their own pros and cons.
In order to make a good choice you need to have a look at your financial status or you can hire a bankruptcy attorney and share your financial data with him.
Since attorneys know a lot about debt and finance, he is the person truly capable of helping you out.
If you are looking for a bankruptcy attorney in Tampa then look no further because internet is the best place to find a good attorney.
If you ask a financial expert that which one of these is better than the other then most likely he will give you an ambiguous answer.
The truth is that the effectiveness of these processes depend on your financial situation.
For a certain person bankruptcy might be the best option available but for another it might be actually harmful.
In this article we will compare bankruptcy with debt negotiation in order to find the better among the two.
Creditor Harassment: If you go for bankruptcy then law will take responsibility to protect you from creditor harassment.
Once a bankruptcy has been filed successfully a stay automatically becomes effective and your creditors can then make no efforts to retrieve their money without violating the law.
They can not ask you for money via phone, letters or anything else.
On the other hand no law can prevent them from doing this in case of debt negotiation.
The immunity offered by bankruptcy can be a big plus for you if you are already depressed because of growing demands of your creditors.
Privacy: If you go for bankruptcy then hardly anyone will find out about it.
But if someone really wants to then he can.
On the other hand there is absolutely no way of finding out about a debt negotiation program.
Effect on Credit Scores: Credit scores are very important for getting loans.
Unfortunately, after going through a bankruptcy credit scores get hurt pretty badly.
Discharged debts stay on a persons credit reports for a time period of 7 to 10 years after the bankruptcy.
However if you take good care of your finances then the scores will start improving within a few weeks.
Some creditors are of the view that people gone bankrupt are actually better for lending purposes because they have no debts and they can't go bankrupt again.
Tax Effects: A bankruptcy in Tampa doesn't require you to pay extra money in taxes but a debt negotiation program does.
This can prove to be an extra burden on people who opt for debt negotiation.
Repayment: Chapter 7 bankruptcy wipes out all the debt and no repayment is required.
Chapter 13, however, requires a person to make regular payments on monthly basis for a time period spread over years.
That is why a person needs to earn a specific amount of money, higher than his expenses, each month in order to be eligible for Chapter 13.
Both debt negotiation and bankruptcy have their own pros and cons.
In order to make a good choice you need to have a look at your financial status or you can hire a bankruptcy attorney and share your financial data with him.
Since attorneys know a lot about debt and finance, he is the person truly capable of helping you out.
If you are looking for a bankruptcy attorney in Tampa then look no further because internet is the best place to find a good attorney.
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