One of the best debt consolidation methods is to file for Chapter 7 bankruptcy. This will allow you to retain essential assets, while non-exempt property will be sold and the money distributed to your creditors. If you do not have a steady income, you can still file bankruptcy under Chapter 7.


In other words, you are eligible if:

-You can only afford to pay minimum payments on your loans

-You cannot find a way to get out of debt within the next 5 years

-You have no disposable income

-You haven’t filed for bankruptcy before

Chapter 13 bankruptcy is another way to achieve debt consolidation.  This will allow you to reschedule your repayments based on future income. This is applicable to people who have suffered financial loss due to a series of life-changing events such as divorce or sickness. If your income is steady and you also have some disposable income, this may be the right solution for you and it will allow you several years to pay your debts in regular installments. 


There are many legal aspects connected to this form of bankruptcy so finding yourself a reliable credit counseling expert will be highly recommended. An Oneida bankruptcy lawyer will analyze your recent credit history, assess your income and financial projections for the next couple of years and will establish if you are eligible.

Last but not least, chapter 11 bankruptcy may be a solution for you. This is also called rehabilitation bankruptcy and it applies to both individuals and small businesses. It allows you to reorganize your debts, especially if they are too large and do not qualify for either chapter 7 or 13.