What is debt consolidation bankruptcy?
Answer:Debt consolidation bankruptcy is in fact Chapter 13 bankruptcy.
Borrowers declaring debt consolidation bankruptcy under Chapter 13 get to keep their property which they would otherwise lose - a car, a house, etc. Debt consolidation bankruptcy includes credit counseling - your debt is restructured and has to be repaid within 5 years as opposed to giving up the property.
Unlike the Chapter 13 bankruptcy, the Chapter 7 bankruptcy is a straightforward bankruptcy meant to liquidate all your assets except those exempt under law. Bankruptcy can be declared once every 6 years and is used to avoid foreclosure and any debt collection activities.
To qualify for a debt consolidation bankruptcy, you need to have a repayment plan. Debt consolidation allows all your creditors to get back their money while you are being helped by professional credit counselor to organize your debt and avoid declaring bankruptcy.
Debt consolidation bankruptcy allows you to avoid real bankruptcy and comes cheaper than hiring a bankruptcy lawyer, or covering for any legal bankruptcy fees.
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