Chapter 7 vs. Chapter 11 vs. Chapter 13
Before you decide on credit repair in Providence you may first need to decide if you should file for bankruptcy in CR or not ? Chapter 7 is the fastest. In many cases, this type of bankruptcy case can be completed in a few months. Chapter 13 cases, on the other hand, cannot exceed five years but usually last about that long. There is no time limit on Chapter 11 plans. It is an essential strategy to repair credit.
Both Chapter 13 and Chapter 11 may allow you to keep certain assets you may lose under Chapter 7. For example, if you own a recreational boat without debt, you may have to surrender that in a straight bankruptcy, but you may be able to keep it if you pay the trustee the value of the boat in your Chapter 13 plan.
Both Chapter 11 and Chapter 13 may offer more help with Providence and mortgages. In Chapter 7, if you are behind on these payments and can’t catch up, you may wind up losing that property. Under Chapter 13, you may be able to catch up on those past due amounts over time. In some situations, homeowners can wipe out a second mortgage on an underwater home or negotiate a modification of their primary mortgage by filing for this type of bankruptcy. Chapter 11 may be especially helpful to small business owners or real estate investors with multiple properties by allowing them to restructure their debts or catch up on payments that are behind. Credit counseling can help with this.
Chapter 7 is generally cheaper than Chapters 13 or 11. With the former, you must pay your attorney upfront. With the latter, you may be able to pay part of your fee over time as part of your plan. Chapter 11 is generally the most expensive due to the higher filing fees and cost of the legal work involved.
In Providence use a trusted credit repair company4 Ways Bankruptcy Can Help You
While filing for bankruptcy may not be the ideal, there are ways doing so can help you.
Eliminate certain debts. Bankruptcy may allow you to wipe out unsecured debts, and some taxes. Student loans typically cannot be discharged, except in cases of extreme hardship. Secured debts, like car loans or mortgages (not including certain underwater mortgages) are not eliminated, however, past due payments may be restructured to let the borrower catch up.
Stop aggressive debt collectors. When you file, you become protected by the “automatic stay,” which stops most collection actions against you. This can give you breathing room while you get back on your feet.
Avoid taxes on canceled debt. If you don’t pay back some of your debt, the creditor may be required to send you a 1099-C reporting this “cancelled” debt as income. This can result in a tax headache for you in future years. But debts discharged in bankruptcy are not considered taxable income, so it’s one less thing you have to worry about.
Allow you to keep protected property. Most of the time, savings in your qualified retirement plans are safe from creditors. In addition, in every state there is a list of exemptions — property you get to keep. There are also federal exemptions you may be able to choose in certain states..
How does credit repair work?How long does it take them to repair my credit?
Every client’s situation is different. How long it takes depends on how many negative items are on your credit report and the responsiveness and cooperation of the credit bureaus and your creditors. Once you get signed up and they’ve reviewed your credit history, it will be easier for them to give you an estimation of how long it will take based on past clients’ results.
Do they offer a guarantee?
Yes, they stand behind their work 100%. They completely guarantee your satisfaction and have made their credit repair service risk-free. If you choose the month by month program, you can cancel at any time and you will not be charged for that month of service. That assures you that you will never have to pay for anything that you’re not happy with. If you decide to go with their flat-fee pricing, you will have a full 6-month satisfaction guarantee.
What items can be removed from my credit report?
It is possible to remove a bankruptcy, student loans, late payments, repossessions, hard inquiries, paid collections, judgments, charge offs, etc.? The answer is “yes” to all of those items. While it is not guaranteed that anything will be removed, it is possible to have any of those items removed.
Once items are deleted, can they reappear on my credit report?
It doesn’t happen very often; however, it is possible that a negative item that was recently deleted can show back up on your credit report. The FCRA requires that the credit bureau informs you before they re-report a previously deleted listing. They also have a limited time of 5 days to re-report the item once it’s been removed. Re-reporting the item after that is a violation of the FCRA which is why they rarely re-report items.
How much does it cost?
They have 2 payment plans. The first is a pay as you go, cancel anytime. You can try out the service for 7 days for just $19 and if you like the service, continue for just $59 a month. Or you can sign up for a complete 6-month program for just $299. Your satisfaction is completely guaranteed.