Debt

Bankruptcy Pros & Cons

Bankruptcy is a court-supervised way of dealing with debt.   There are different types of bankruptcy filings.  For purposes of this article, the two main types are Chapter 7 and Chapter 13.  Typically, consumer debtors are most interested in Chapter 7 filings.  Chapter 7 filings tend to be faster and allow for a “fresh start.”  Not …

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Debt Settlement Pros & Cons

Compared with debt management programs, debt settlement is a more aggressive option.  This type of program is geared towards debtors who have fallen on some type of financial hardship.  First, the debtor stops making payments to their creditors and, instead, begins to save up funds (usually in some form of escrow or trust account).  After …

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Debt Management Pros & Cons

Debt management is when a debtor hires a credit counseling agency to work out a repayment plan with creditors.  The resulting plan—a debt-management plan (“DMP”)—is usually three to five years in duration and will result in full principal repayment to creditors.   DMPs are a less aggressive option, at least when compared with debt settlement and …

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