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Chapter 13 Bankruptcy vs Debt Settlement

debt settlementAt my practices in Brooklyn and Long Island, I have represented thousands of people through financial crisis, and although the individual set of circumstances differ, there are a few common themes.  In fact, I’ve found that when most people are faced with mounting bills and desperately want to get out of debt, they want to pay!  They first start to haphazardly send in minimum payments – maybe a few dollars more – until they come to the realization that their debt is not decreasing and all of their hard earned money is going to interest payments and late fees. Their desperate search for a solution then turns toward a comparison of Chapter 13 bankruptcy and debt settlement companies. There are real differences between debt settlement and Chapter 13 bankruptcy. The trick to learning what is in your best interest is getting a free consultation with a qualified attorney and getting past the myths about bankruptcy and analyzing the two different options.

 

Nicole R from Suffolk County was dead set against bankruptcy until she got tired of throwing away her money and was driven into my office – Doyaga & Schaefer.  Nicole and her husband had previously filed a Chapter 7 bankruptcy.  After their bankruptcy, they had a child and bought a home.  But when Nicole lost her job as a video editor, their family amassed $70,000 in credit card debt.  Nicole was tough and had lots of great questions.  We discussed all her concerns and she ultimately made the decision to abandon her effort through debt consolidation and file for Chapter 13 bankruptcy.  Below are some of her concerns:

Will I Get Fired If I File For Bankruptcy?

Bankruptcy DiscriminationAs a single woman living in Ozone Park, Queens, Jocelyn M. was petrified that if she filed for Bankruptcy everyone she knew would find out. The fear of public embarrassment prevented her from addressing her credit card problems. The amount of collection calls steadily increased and so did her anxiety. Desperate for a cheap way to address her credit card bills she investigated how Bankruptcy could improve her situation.

 

Jocelyn met with the attorney at Doyaga & Schaefer who assured her that it was her legal right to seek a discharge in Bankruptcy and that it was illegal for an employer to discriminate against her. In real life terms she was comforted by the reality that the fresh start bankruptcy provides is looked at far more positively than large unpaid bills and aggressive creditor lawsuits. It all made sense to Jocelyn, a debt free life is nothing to be embarrassed about.

 

Jocelyn received her discharge. Her employer of 2 years never found out she filed for Bankruptcy. But even if he did Jocelyn was now confident that he would agree that people, especially a trusted hard working employee deserves a second chance.

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