Personal bankruptcy can help you reduce your overall debt, making the future easier to plan and more exciting to think about. When you are just barely getting by, it can seem like you are working hard for no reason at all. You want to have enough money to pay the bills and put a little away too. Your future depends on this.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is designed for individuals who have assets they wish to protect in bankruptcy such as a house or car that is of a moderate value. State limits will vary, so consult local legal counsel to find out what you can keep in your Chapter 13 bankruptcy. It is also a good option for individuals who have high unsecured debt and moderate incomes, but their debt is making it difficult to get by. Even some lawyers and other respected professionals file for Chapter 13 because after graduate school, student loan payments along with credit card and other debts can make it difficult to get by.
The Repayment Plan
You will likely propose a repayment plan in filing for your Chapter 13 bankruptcy. Your attorney will help you calculate what is appropriate give your financial situation. A repayment plan helps your creditors recover some of their investments while relieving you of a portion of your overall debt. It is a win win in bankruptcy for both parties. While you do not get complete debt relief and your creditor does not get full payment of your debt, you both get some relief, and you get to retain some assets.
Once your repayment plan is accepted by the court and your proceedings are final, make sure that you make each and every monthly payment on time. If you have trouble making payments at any time during your repayment plan, contact the bankruptcy trustee who is handling your case or your attorney and ask for advice. If you do not successfully make each and every payment, you may jeopardize your bankruptcy because discharge of the debts you do not have to pay in the Chapter 13 bankruptcy occurs at the end of repayment of your plan.
Getting Legal Help
An attorney will help you file for Chapter 13 bankruptcy if it is the best option for you. You do not have to hassle with worrying about excessive debts or how to file for bankruptcy; an attorney will walk you through the process step by step.
