Do You Qualify For Chapter 13 Bankruptcy?

Are you a candidate for Chapter 13 bankruptcy? If the following characteristics describe your situation, then you may be able to benefit from this federal program, designed to help those overwhelmed by their debt to repay their creditors over time.

1. You feel overwhelmed by your debt and interest rates.

By filing for Chapter 13 bankruptcy, your creditors agree to reduce your payments and total amount owed, in exchange for your submission to a newly created payment schedule. Through reorganizing your bills, you can avoid defaulting on your bills and having legal action brought against you.

2. You desire to get your financial life on track.

When you file, the court will likely require you to take steps to establish greater financial stability, which will benefit you in the long run. You’ll have to meet with an approved credit counseling agency and take a financial management course. After the training you’ve received, you’ll need to propose a budget that shows how you will be able to meet your obligations to your creditors, according to the new schedule, as well as take care of your other regular living expenses. You’ll have to keep up with the payment schedule, usually aided by a court-appointed trustee. In the interim, you’ll be gaining valuable financial savvy that can help you stay out of debt, once you’re unburdened from your current problems.

3. You want or need protection from your creditors.

Indebtedness isn’t just a financial drain; it can be emotional, as well. The constant worries that come with potentially losing your property and possessions can lead to depression and even suicide. Instead of continually considering such drastic measures, you can find relief. As long as you follow your new budget and make your re-organized payments on time, you’ll be protected from any attempts at collection or property seizure by your creditors.

4. You want to avoid Chapter 7 bankruptcy.

Whether it’s because you have nonexempt property you don’t want to have to forfeit, or because you have a desire to repay your debts, Chapter 13 bankruptcy can help relieve the pressure of indebtedness without many of the negatives associated with other formats. At the same time, you’ll be able to leave your options open, if you have a future need to do so.

By filing for Chapter 13 bankruptcy, you can leave the stress and worries that come with overwhelming indebtedness behind, while moving ahead toward a financially responsible future.