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Many people who owe money consider filing for bankruptcy.  Bankruptcy can give people with lots of debt a fresh start.  Chapter 7 bankruptcy eliminates qualifying debts and the person does not have to make additional payments to creditors.  Chapter 13 bankruptcy consolidates and reorganizes a person’s debt and the person must pay the bankruptcy trustee, who then pays creditors a percentage of what they were owed.  Bankruptcy is not always the best option for people who owe money, and can only be used once every 8 years.  Before filing for bankruptcy, a person should try to get advice from a bankruptcy specialist.

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