When many people think of bankruptcy, they likely think of a Chapter 7 bankruptcy, which involves the total liquidation of an individual’s debts. There are downsides to Chapter 7 bankruptcy, such as the fact that it requires the filer to give up some of their possessions, that make bankruptcy seem like an unattractive option.
However, what if you knew that there was another option for filing bankruptcy that isn’t as absolute as a Chapter 7?
If you find yourself struggling to pay off your debts, then seeking the help of a Chapter 13 bankruptcy attorney for help with filing bankruptcy could help you manage your finances in a sustainable manner again.
But how do you really know if a Chapter 13 bankruptcy is your best option?
Here are the four easiest ways to tell if filing Chapter 13 bankruptcy is the right option for you:
1. You have trouble paying your debts: First of all, what is Chapter 13 bankruptcy? Any Chapter 13 bankruptcy attorney will tell you that it is an adjustment, not forgiveness, of your debts, that establishes a repayment plan with no interest that better suits your income. If you’re currently taking out more loans to pay for your existing debts, it might be time to consider filing a Chapter 13 bankruptcy.
2. You want to pay your debts: Many people are uncomfortable with the prospect of choosing to file bankruptcy with a Chapter 7 bankruptcy attorney because they feel morally obliged to pay back their creditors. Filing for Chapter 13 bankruptcy will allow you to repay the debt you originally created, fulfilling your moral need.
3. You’re sick of creditor harassment: When you can’t pay your bills, your creditors will let you know. Repeatedly. If constant phone calls from debt collectors are stressing you out to the point where it’s taking a toll on your well-being, it might be time to talk to a Chapter 13 bankruptcy attorney and see what your options are.
4. You want to hold on to your assets: Filing a Chapter 7 bankruptcy requires you to give up pretty much all of your material assets apart from your home and your car. If you have a large house and other nice possessions that you’ve worked hard to get, you should file Chapter 13 bankruptcy instead. More on this topic.