One of the most important things you can do is understand the cost, the timeline, the pros and cons and the alternatives of each debt relief option.
A Chapter 7 bankruptcy is the most common consumer bankruptcy filing in the United States. It is more affordable than a Chapter 13 bankruptcy. You can also receive relief from your debt in as little as 120 days. You qualify by being under the income limit for filing Chapter 7 in your state. Our Chapter 7 means test calculator helps you estimate qualification for the Chapter 7 bankruptcy. The calculator is based on the bankruptcy forms.
A Chapter 13 bankruptcy is a monthly payment plan bankruptcy. It is more expensive than a Chapter 7 bankruptcy. The plan often lasts between 3 and 5 years. You can estimate a Chapter 13 payment plan example using our Chapter 13 Calculator. For both Chapter 7 and Chapter 13, you will want to understand the cost to file bankruptcy. If you have filed a Chapter 7 recently, you may also research how to file a Chapter 13 after Chapter 7 bankruptcy.
Debt settlement is a monthly payment plan debt relief option. Many people compare debt settlement vs bankruptcy. A debt settlement company will negotiate with your creditors for a lower total owed (Ex: $10,000 to $5,000). Please note that there are pros and cons to debt settlement. For example, you may see a negative credit score impact. Also, you should confirm that the debt settlement company is legitimate. You can read more on debt settlement from the Consumer Financial Protection Bureau.
Debt management is a monthly payment plan debt relief option. Many people compare debt management vs debt settlement. A debt management company will negotiate with your creditors for a lower interest rate (22% to 9%). Please note debt management companies are often non-profits, also referred to as credit counseling agencies. A debt management calculator can help you estimate qualification and cost.
Debt payoff planning is a monthly payment plan option. You often need disposable income to make extra payments based on a debt payoff strategy. Ascend built the Savvy debt payoff planner to help users prioritize their debts in order to help them save $2,000 in interest and get out of debt 6 months faster.
Debt Consolidation loans provide an opportunity to consolidate all of your credit card payments into one payment. You may save money and add everything to one payment, but you may have to qualify for a good interest rate with a good credit score and lower DTI. Check our Debt Consolidation Loan Calculator if you are interested in this option.
