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 […]
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
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
For most Americans, debt is a part of normal life. While the idea of “debt” comes with a certain stigma, many experts agree there are good and bad ways to owe money. Mortgages and student loans are often cited as examples of “good” debt. On the “bad” side of the spectrum are things like high-interest
