Many people are struggling in today’s hard economic times. You may go to work every day but still not be able to get ahead. You’re living paycheck to paycheck and still come up short by the end of the week. When you’re struggling to pay your debts, and seem to be going backward instead of forward each month, you may need to consider something a bit more drastic to get rid of your debts once and for all. You may want to speak with an attorney about filing a Chapter 13 Bankruptcy.
A Chapter 13 Bankruptcy isn’t quite the same as a Chapter 7 bankruptcy, where you have no assets, your debts are wiped away at your hearing and you have to start again from the bottom up. A Chapter 13 is for someone who has some assets and has a means of paying back a portion of their debts. A Chapter 13 bankruptcy can be looked at as a “personal reorganization bankruptcy.” Your attorney will help you reorganize your debt and create a payment plan to repay part of your debt. The repayment plan usually lasts 3 – 5 years, and when you complete the plan, the remaining debt is discharged and you begin anew.
You will most likely be expected to put all of your disposable income toward your debt. After you put together a repayment plan with your attorney, you will go before a judge, with your attorney present, to make sure the plan is approved. If it is, you will start the following month, paying your agreed upon monthly payment to your court appointed trustee. It’s important to not miss a payment, as it can jeopardize your bankruptcy.
No one wants to file bankruptcy, but sometimes it is necessary. Bankruptcy is not for failures, but instead, it is a way to help you get out of the financial dilemma you’re in and give you a fresh start. If you think this may be what you need, contact a lawyer that deals in bankruptcy. He’ll be able to tell you what your options are, and what is best for your financial future.
