Another major change to the bankruptcy laws involves certain hurdles that you must clear before even filing for bankruptcy, no matter what the chapter. Also, before you file a Chapter 7 bankruptcy case, you must satisfy a “means test.” This test requires you to confirm that your income does not exceed a certain amount. Read more on dealing with debt from the FTC or contact the AFSA’s Education Foundation at 1-888-400-2233 for more credit and money management information.
You must get credit counseling from a government-approved organization within six months before you file for any bankruptcy relief. The amount varies by state and is publicized by the U.
You can find a state-by-state list of government-approved organizations at
Let’s say you have ,000 in debt from credit cards and medical bills.
You may have also heard debt consolidation called other terms like credit card consolidation or bill consolidation.
The Chapter 13 waiting period is much shorter and can be as little as two years between filings.The Federal Trade Commission (FTC) cautions consumers to read between the lines when faced with ads in newspapers, magazines, or even telephone directories that say: “Consolidate your bills into one monthly payment without borrowing.” “STOP credit harassment, foreclosures, repossessions, tax levies, and garnishments.” “Keep Your Property.” “Wipe out your debts! If you’re having trouble paying your bills, consider these possibilities before considering filing for bankruptcy: If none of these options is possible, bankruptcy may be the likely alternative. The net effect of these changes is to give consumers more incentive to seek bankruptcy relief under Chapter 13 rather than Chapter 7.There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Chapter 13 allows you, if you have a steady income, to keep property, such as a mortgaged house or car, that you might otherwise lose.At One Main, we understand each customer is unique.There is no “one size fits all” when it comes to debt consolidation.