How To Know If Chapter 13 Bankruptcy Is Right For You

13 June 2022
 Categories: Law, Blog

If you have started to consider the option of filing for bankruptcy, you need to first consider if chapter 13 is actually the best option for you. While you might want to be rid of all of your debt, your personal and financial situation might not warrant a chapter 7. With chapter 13, you are basically getting a court-ordered payment plan that your creditors are forced to follow. Is this a good solution for you? Continue reading to find out.

You Have Property You Don't Want To Lose

If you were to file chapter 7 bankruptcy in order to cancel out all of your debt, the courts would force you to sell all of your property that is not considered your primary home. Therefore, investment properties, campsite lots, and vacation homes will be sold to cover the debt that you state you are unable to pay anymore. Should you decide that you want to keep your properties but you still need help, you can file for a chapter 13. This is when you will keep your properties and possessions but get a court-approved payment plan that better suits your current financial situation.

The Payment Plans Offered By Creditors Aren't Affordable

Not only do you have to worry about paying your creditors, but you also have many other expenses in life and only so much income each month. If you have tried to make payment plans on your own with the various companies you owe money to, but they are unwilling to agree to terms you can afford, a chapter 13 bankruptcy might be your best bet. The bankruptcy court will consider what you can actually afford and you will make one monthly payment. That payment is then divided up among your creditors, and they have to accept the payments, even if they are less than what they tried insisting you pay. Once you are out of the bankruptcy statutes, you will then be responsible for making direct payments to your creditors again.

Now that you have had some time to think about it, you should find that it is a little easier for you to decide if you need to go ahead and set up an appointment with a chapter 13 bankruptcy attorney. The sooner the appointment is set up, the sooner you can get the bankruptcy started. Once there is a filing number in place, you can provide it to all of your creditors.

Contact a chapter 13 bankruptcy attorney for more information.