Realizing that you can’t handle the credit payment you’re supposed to make is harrowing. This can come from a variety of reasons, including job loss or illness. Individuals who are in this position usually try to find ways that they can recover financially. This isn’t always easy; however, filing a Chapter 13 bankruptcy might get you on the right financial track.
We know that this is a big step for most individuals. We want you to understand what filing this type of bankruptcy means. One of the most important things that you need to remember is that you’ll be making payments to the bankruptcy trustee for three to five years to pay off as much of the debt as possible. Any assets that you own that are considered nonexempt will also be liquidated to cover the balances.
Another consideration for many individuals is that they won’t be able obtain new lines of credit. The current lines of credit will all be included in the bankruptcy, so they are unusable. You’ll have to live off of the income you have left after the payments to the bankruptcy court. This might be a challenge for some people, but the payoff of being able to come out of the bankruptcy in a better financial position is often worth it.
Preparing your Chapter 13 filing can take some work, especially when you start to think about the repayment plan. We can help you with every aspect of your case so that you can focus on things like budgeting and learning to move forward with your life.