Bankruptcy is an option available to individual\’s who can no longer pay their debts. More information on that subject is covered in the following paragraphs. Debt Consolidation is another option available. This type of service involves all of the individual\’s unsecured debts being combined and one payment per month being made to a credit counseling agency who then distributes them to the individual\’s creditors. Monthly payments are lowered and some penalties forgiven when debt\’s are consolidated.

In a Chapter Seven filing, most of an individual\’s unsecured debt is no longer owed and cannot be collected once a discharge has been received. Reaffirmation agreements can be negotiated to keep a home or other secured object, such as an automobile.

Once an agreement to reaffirm is filed with the court, the individual can keep the asset. The liability to pay the debt does not go away and will have to be paid to avoid the creditor taking and disposing of the property. An individual is not, however, required to keep anything and can surrender the asset to the creditor and no longer owe anything.

Individual\’s who have a steady job and get a regular paycheck can file a Chapter Thirteen. The amount required to be paid by the Thirteen plan is automatically deducted from the pay and sent to the court trustee. From there, it is distributed to each creditor who is scheduled to receive a payment.

Once an individual files, creditors are prohibited from contacting them in any way. They must cease all collection efforts. This means that individuals who file will keep their homes or cars that are secured by a loan until the court makes a ruling.

Within thirty days of filing a Seven and between thirty-six and sixty months in the case of a Thirteen, an individual will receive a discharge if all requirements are met. This means that debts that were listed will no longer be owed, with a few exceptions. Any reaffirmed items will not be discharged and will have to be paid as dictated by the contract with the creditor. Some other debts, such as restitution and fees in criminal cases, some federal loans, and payments for the support of a child or children, are not dischargeable and the person will continue to owe them.

Discharges in a seven will only be awarded once every eight years and in a Thirteen every six years. Before one will be awarded, individuals are required by the court to complete a course in how to manage their finances. The fee for these courses varies and must be paid by the individual. The agency that provides the classes must be on a court approved list. Some providers allow the courses to be taken in a classroom, at an online website, or by phone.

Credit counseling is a requirement prior to filing a bankruptcy. It may be best to schedule an appointment with an agency that provides that service to discuss debt consolidation and other available options. Once that is complete and a decision is made to file either a seven or thirteen, this requirement will have been completed and the individual can move forward with filing.

In need of Ottawa debt consolidation? Reclaim your financial future with the guidance of Doyle Salewski Inc. – Ottawa Credit Counsellors and Trustee In Bankruptcy 396 Bank Street, Ottawa, ON K2P 1Y5 (613) 237-5555.

In need of http://www.doylesalewski.ca/personal/en/debtsolutions/ Ottawa debt consolidation? Reclaim your financial future with the guidance of Doyle Salewski Inc. – Ottawa Credit Counsellors and Trustee In Bankruptcy 396 Bank Street, Ottawa, ON K2P 1Y5 (613) 237-5555.

Author Bio: In need of Ottawa debt consolidation? Reclaim your financial future with the guidance of Doyle Salewski Inc. – Ottawa Credit Counsellors and Trustee In Bankruptcy 396 Bank Street, Ottawa, ON K2P 1Y5 (613) 237-5555.

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