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Insolvency Can Penalize High-Income PeopleMost debt can be eliminated with Chapter 7, which includes selling (liquidating) your assets to pay your creditors. If you make too much money, however, you can not file for Chapter 7 bankruptcy. Due to changes in bankruptcy law passed in 2005, the government is steering more filers to Chapter 13, where you enter a repayment plan of three to five years. People in Chapter 13 pay more of their debts compared to Chapter 7 filers. With Credit Solutions debt relief service, you only pay a portion of your credit card debt, which gets you out of debt faster and without the annoyance of bankruptcy. The appeal of Chapter 7 is simple: a substantial amount of one’s debt’s can be forgiven. To qualify for Chapter 7 bankruptcy, you must pass income requirements or an economic means test. Our debt-relief service can get you debt free in three years or less without being subject to these annoying requirements. We can talk directly with your creditors to reduce your credit card debt balance. Under previous bankruptcy rules, the bankruptcy judge could dismiss a Chapter 7 bankruptcy case- and kick the filer to Chapter 13 – if the judge believed the filer had significant income to pay his or her debt. The change, effective October 2005, created hard and fast economic indicators to qualify for Chapter 7. To qualify to file under Chapter 7 bankruptcy, your monthly income must be less than or equal to the median income for the size of your family in your state. If your income is higher than the state median for your family, you must submit to an economic means test to qualify for Chapter 7 bankruptcy. The means test determines if you truly have enough extra income to pay your debts, instead of having most of them eliminated. Basically, it looks at various expenses left over from your income. Through our debt-relief service you don’t have to wade through a lot of math to get debt free. If you are disqualified from Chapter 7 bankruptcy, your repayment plan under Chapter 13 takes longer than becoming debt free with our debt-relief service. Nearly 70,000 families with varying incomes have been helped by our debt-relief service. Our debt-relief service, which includes a certified call center, doesn’t place barriers based on income. We understand debt problems affect all sorts of people and can tailor our debt-relief service to your needs. Author bio: Brian Williams, a graduate of the University of Texas at Arlington, has 11 years’ experience writing and editing at daily newspapers in Texas. Having worked his way through college and experiencing the transition to professional life, Brian understands how credit affects people’s lives. For more articles by Brian, go to http://www.creditsolutions.com. Credit Solutions is your alternative to debt consolidation.
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