Should You File Chapter 13 Bankruptcy? Here Are Some Things To Consider

Suffering financially can be a very hard thing to deal with, especially if you have tried and have been unable to get everything sorted out. In some situations, people have to decide to get help or relief from the courts by filing for chapter 13 bankruptcy. This is when you will have a court ordered repayment plan to help you get everything back on track. The complete wipe-out of your debts is a chapter 7, and that impacts your credit in a much bigger way. To help you determine if you are in a position where filing for a chapter 13 bankruptcy makes sense, you will want to review the following information.

Your Original Financial Trouble Is Gone

Many people find themselves suffering financially because of a temporary financial setback. It could have been that you were temporarily out of work until you find new employment, unexpected medical expenses, or legal expenses. Whatever it was, if it is no longer an issue for you but you are having trouble catching up on the past due debt that built up during that time, you might be the perfect candidate for a chapter 13 bankruptcy. If you are still going through personal trouble that is causing you to have less income than normal, you may not qualify for bankruptcy 13.

Your Creditors Refuse To Work With You

If you have the income to pay your bills on time now, but your creditors are refusing to work with you so you can have a payment plan to catch everything up, you may need to seek legal advice. It can be nearly impossible for most people to suddenly come up with the total amount past due, especially when they have multiple creditors asking for payments made in full to bring the accounts current. Through a chapter 13 bankruptcy, you will make one payment each month, and that money is divided among your creditors. The plan is to have your bills caught up by the end of the repayment plan.

Should you decide that you believe you would benefit from this type of bankruptcy and you would like to begin the process, you will need to get in touch with a bankruptcy attorney. He or she will want to review all of your debts and compare all of that against your income in order to ensure that you are a good candidate for this type of financial help. The sooner you make an appointment for a consultation, the sooner you will have the relief that you need.