How long would it take you to pay off your Washington consumer debt? Experts say that those who are facing financial difficulties may benefit from Chapter 7 bankruptcy if debt repayment is anticipated to take five years or more. Although it is critical to consider the impact that bankruptcy could have on your credit score, experts say that liquidation bankruptcy could be a viable option for those who are facing serious, immediate financial troubles.
Consider the example of a Washington resident who has a relatively good credit score – hovering at about 700 – but who spends half of her income on payments for debts such as loans, medical costs and credit card bills. That is a seriously overwhelming financial situation! Although this woman has an above-average credit score, would it make sense for her to file for bankruptcy?
The answer might surprise you. Experts say that those who are facing debt that could take five or more years to repay could benefit from choosing Chapter 7 bankruptcy. Chapter 13 bankruptcy is also an option; through that method, borrowers are given a five-year plan for restructuring their debts so they can pay off what they owe. Qualifying for Chapter 7 bankruptcy is not as difficult as you might think, though, and it is generally far faster than a Chapter 13 proceeding. Imagine having your debt wiped away in just months.
Washington residents are urged to remember that struggling against impossible debts can actually be a fruitless endeavor. If you need a fresh financial start that allows you to save money and get back on track to lasting stability, you might be a good candidate for liquidation bankruptcy. You do not have to suffer by spending half of your income on your consumer debts!.
Source: Source: “Consider filing for bankruptcy if debt repayment would take five years,” Liz Weston, July 6, 2014