Once you file, collectors are legally banned from calling you and the bankruptcy trustee will plan to take all of your nonexempt assets, such as a second vehicle, family heirlooms, stocks and bonds and other valuables to pay off your debts.At the end of your Chapter 7 bankruptcy, the judge will erase or discharge all of your unpaid debts, which means you won’t have to pay them.Here at Ready For Zero, we’re all about empowering people by helping them create a debt payoff plan and keeping them motivated along the way.
And there may even be times when a debt payoff plan just won’t be good enough for your situation.
The other type is carried out through a debt management program (DMP).
In this scenario, an account will be created to keep track of all the balances owed to current creditors.
In these cases, debt consolidation and debt settlement may cross your mind.
But how can you know which is the better option – or if either option will help you?