When you find yourself swimming in debt, you may also find yourself in an ocean of debt-relief options. Which one do you choose? First, be aware of scams. Many people under the guise of a legitimate company will take advantage of your desperation, offering too-good-to-be-true plans for eliminating debt that do nothing but make more of your money disappear.
An option you may be considering is bankruptcy. Two types exist for consumers: Chapter 7 and Chapter 13. Chapter 7 eliminates certain debts, so you do not have to repay them and can start with a clean slate. Chapter 13 involves a reduced payment plan so you can retain property. How do you know if Chapter 13 is right for you?