Debt Relief Alternatives To Chapter 13 Explained

June 22, 2010 - PRLog -- A person first need to understand the basics of what chapter 13 bankruptcy is. A chapter 13 bankruptcy is a reorganization bankruptcy. This is designed for individuals who feel they have a chance and a means to repay their debt. Chapter 13 bankruptcy rules allow for debt repayment to be performed over a time period of 3 to 5 years.

Get Started With Debt Relief Today:

http://www.federaldebtreliefprogram.com/

This is simple and straight forward enough. Where a chapter 13 bankruptcy can go wrong is. Chapter 13 brings with it a host of harsh, negative consequences for the person who files.

Consider the following:

The person who files for chapter 13 will have ruined their credit. FICO has revealed that a bankruptcy filing will cause a person's credit record to drop by almost 300 points.
Additionally, the person who files for chapter 13 can expect to be required to pay hefty deposits for utilities in the future such as gas, electricity, water, home phone, cell phone, cable TV, internet, etc.

A chapter 13 bankruptcy on a person's credit record can also prevent them from renting an apartment in their own name, and can lead to them being passed over for a job, as more and more companies these days performing credit checks on job applicants.

Debt settlement is an effective debt relief alternative to bankruptcy. Here's how it works:

A debt settlement firm will negotiate on behalf of the consumer or business in debt with their creditors in order to obtain an agreed upon reduction in the amount of debt that is owed. In many cases, debt settlement can achieve debt elimination of 50 percent or more -- without any new loan being taken out, and without a bankruptcy filing.

Debt settlement is one of the best bankruptcy alternatives that is proven to be quick and effective. To learn more about your debt relief alternatives and how to get started, please visit Federal Debt Relief at:

www.federaldebtreliefprogram.com