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The strongest form of debt medicine and that's bankruptcy. There's really two forms for consumers
of bankruptcy, a chapter 7 which is a straight liquidation. Your assets are liquidated and
it is your court appointed trustee manages the pay off and liquidation of all of your
debts and then theres a chapter 11 for business, a chapter 13 for consumers, where it's a repayment
plan, over about 5 years on average. You're repaying a bunch of your debts, including
secured and unsecured. Now bankruptcy reform went into effect, so make sure you evaluate.
Can you qualify for a 7, which is where you get the true benefits and liquidation. Or
do you get forced into a chapter 13 program, where you have to repay a portion of your
debts over typically about 5 years with monthly payments, again managed by a trustee? Very
aggressive approach it devastates your credit score. It can impact your ability to get
employment, government jobs, leases. So it's something that should be seriously considered
and typically it's the last stop on all of the debt relief alternative paths. Where if
you can qualify for a refi loan, try that first and then evaluate credit counseling
or even debt settlement as bankruptcy alternatives. But if you are really in financial hardship
and can't afford monthly payments, we definitely advise you to seek council from a bankruptcy
attorney. Ideally a local bankruptcy attorney in your state, in your area. See what you
qualify for, see what the options would look like for you in your situation. Thanks for
coming to Bills.com, we're helping thousands of people solve money problems every day.