Is Chapter 13 right for you?
If you have reached a financial crossroads and are earning an income but unable to get out from under mounting debt, then you may be considering your options for filing for bankruptcy protection. If you are in this situation, the first thing you need to know is that you are not alone. Millions of people across the U.S. seek out debt relief in the form of bankruptcy.
The second thing you need to know is that you have a number of options when it comes to bankruptcy. For example, if you are more interested in repaying your debt than you are in having it completely discharged, you may want to consider Chapter 13 bankruptcy.
Chapter 13 bankruptcy is unique in that it is a program that allows people to repay all or some of their debts rather than have them wiped out. People in this situation will work with creditors to define a repayment plan that will allow people to repay debt under revised terms.
If this sounds like a good option for you, you must also determine if you are eligible to file for Chapter 13. The requirements for relief under Chapter 13 include limits on the secured and unsecured debts you have, compliance with bankruptcy court proceedings and the requirement to complete credit counseling. It will also be important that you have some type of income that can help you keep up with the new repayment plans.
Chapter 13 bankruptcy can be a solid option for people struggling with debt. However, it is not the only option available. There are additional types of bankruptcy and forms of debt relief that can also be considered, and speaking with an attorney can help you better understand what may be right for your particular situation.