Over time, personal debt can pile up higher and higher, making it nearly impossible for anyone to stay on top of it all, even those with significant incomes. If you have substantial income and are looking for financial relief and protection from creditors, filing for Chapter 13 bankruptcy may be a tool that meets your needs,. However, you must be willing to follow the process through to the end and remain within its rigid guidelines.
Chapter 13 bankruptcy offers debtors the opportunity to halt collection efforts and repay their debts at a manageable rate using their existing incomes. Under Chapter 13, courts can compel creditors and other collecting parties to cease all collection efforts immediately and present debtors with structured paths to financial freedom. In return for this breathing room, debtors must comply with certain financial restrictions for a set period of time.
If you qualify to file for Chapter 13, then it is well-worth considering. As you move forward toward financial recovery, be sure to carefully examine all your legal options to ensure that you do not overlook important opportunities and protections.
Halt collections
When your debts grow overwhelming, it’s often not the debt itself that weighs on you but the collections tactics of your creditors. The constant pressure and threats can make it difficult to fairly assess your circumstances and make informed choices. The emotional stress of constant collection efforts may very effectively wear you down. Chapter 13 places an immediate stop to collection efforts from creditors, giving you the mental and emotional room to make informed, well-reasoned financial decisions.
When you file for Chapter 13, a court must approve a repayment schedule that works for your income. This repayment plan addresses your debts, allowing you to repay most or all of them over a period of three or five years. During this time, you enjoy freedom from collection efforts on the debts included in the repayment plan, allowing you to dig your way out in peace.
Keep your property
Whereas Chapter 7 bankruptcy offers debtors the opportunity to forfeit their property in return for debt relief, Chapter 13 often does not require a debtor to forfeit property at all. As long as the property you hold does not exceed certain thresholds of value and you have the income to comply with your repayment plan, it is possible to achieve financial freedom without sacrificing your personal property.
Begin your financial recovery today
No matter how you found yourself in financial crisis, you can begin working toward recovery immediately. Chapter 13 offers many vital protections to your rights as you do the hard work of getting back on track with your finances and moving forward into a new chapter, wiser and stronger than before.
