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So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.You may want to consider a chapter 7 bankruptcy. I will explain.As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.Here are the exemptions for Nebraska:http://www.bankruptcyinformation.com/ne_exemp.htm
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Do you really think bankruptcy is our only option at this point? We are perfectly willing and able to pay this off if we can get the interest lowered!
It is unlikely that the credit credit card companies will reduce the interest on a permanent basis absent a bankruptcy.
a chapter 7 would immediately eliminate most/all credit card debt
a chapter 13 bankruptcy would allow you to pay a portion of the debt over a five-year period and have the balance discharged
How badly will our credit be affected?
Your credit is likely already poorly impacted by the hardship plan. A bankruptcy will be a negative impact on your credit however most people find that they are able to reestablish good credit within 2 years after filing a chapter 7 bankruptcy
I'll look into it. Thank you.
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