Chapter 13 bankruptcy law: More than a debt repayment plan

Chapter 13 bankruptcy law: More than a debt repayment plan

When dealing with significant monetary issues, it can be difficult trying to figure out the best way to improve one’s situation. There are several debt relief options open to Michigan residents, but there is also a lot of misinformation out there that may cause someone to overlook a relief option that may actually be good for them. Take Chapter 13 bankruptcy law for example. Some people equate it to a debt repayment plan — one that destroys one’s credit — but it is so much more than that.

Bankruptcy is a last resort. It is not something that a person should jump into doing if he or she has other options that would achieve the same end result. However, for those who find that bankruptcy is the right way to go and a Chapter 13 filing is what they qualify for, it is good to know exactly what one is getting into before initiating a petition.

Yes, a Chapter 13 filing, if approved in court, does result in a person achieving a debt repayment program. The amount one has to pay on a monthly basis will all depend on debt amount and current income status. It also offers certain protections from creditors, can halt the foreclosure process and can result in certain debts being discharged at the end of the repayment period. In other words, it accomplishes a lot of good, which may outweigh what some people think is bad about going this route.

Chapter 13 bankruptcy is not without its faults and is not for everyone. However, for certain Michigan residents, it may be their best bet for achieving the debt relief that they desire. Those who would like to find out more about Chapter 13 bankruptcy law, its benefits and if they qualify can turn to legal counsel for guidance on the matter.

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