Bankruptcy
Bankruptcy should only be used as a last resort option and you should never rush into it, despite the immediate debt relief it can provide. Bankruptcy can follow you your whole life. "Have you ever filed for bankruptcy?" now appears not only on loan applications, but also on job, school and professional licensing applications. Bankruptcy is always an option for anyone, and can be entered into at any time, no matter the status of your debts. New Leaf's Debt Settlement program is a bankruptcy alternative.
Two of the most common forms of bankruptcy are Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
- Depending upon the type of bankruptcy you qualify for (Chapter 13 Bankruptcy or Chapter 7 Bankruptcy), you may be freed from all debts immediately. Another type of bankruptcy allows you to pay a portion of your debt over 3-5 years.
- New credit becomes very difficult to obtain or is offered only at excessive interest rates.
- You can loose your home, your car, and other assets depending on your situation.
- Your credit is not only blemished, but your ability to borrow again is severely hampered for up to 10 years.
- The implications of bankruptcy can follow you the rest of your life.
- By the end of the program, credit blemishes are largely counterbalanced by your outstanding debt being reduced to zero.
- Upon completion, credit is usually obtainable at a variety of rates that improve with time and a positive payment history.
- New Leaf Debt doesn't require you use the equity in your home, your car or other assets.
- The goal of New Leaf's program is to provide you with debt help and a debt-free solution that gives you a fresh start within 2-3 years.
Bankruptcy is an alternative that will encumber your financial opportunities for a long time to come. It may be unavoidable in cases where an individual doesn't earn enough to pay even a portion of their debt or simply has no income.
Before considering Bankruptcy, please read and understand some alternative types of debt relief: Debt Management, Debt Negotiation, Credit Card Debt, Consumer Credit Counseling and Debt Consolidation Program .
