When the bills pile up and can’t be paid for whatever reason, life can be pretty stressful. Dodging bill collectors and certified mail from creditors can become exhausting, and once a lawsuit gets filed against you for recovery, you may find the whole situation hopeless. You have been trying to avoid filing bankruptcy, partly because you know the consequences and somewhat because you don’t understand the process. If you own property and earn a regular monthly wage, you may want to read these three reasons Chapter 13 bankruptcy might work.
1. Chapter 13 Bankruptcy Is a Payment Plan
When you think of bankruptcy, you probably assume it means you will be homeless, carless and penniless for years to come. That is not the case. In Chapter 13 bankruptcy, the debtor (you) along with your chapter 13 lawyer orlando fl will meet with your creditors and reach a payment plan. This monthly plan lasts anywhere from three to five years. As long as you make these payments, you will be out of bankruptcy – and debt – by the end of that time.
2. You Don’t Have To Sell Everything You Own
If you fit the legal parameters for the amount of secured and unsecured debt, you may get to go through bankruptcy and keep your home and cars. As long as you are not in default on paying these bigger ticket items, you can keep them independent of any payment plan or bankruptcy agreement reached with the other creditors.
3. Your Attorneys’ Fees Can Get Rolled In
You may believe bankruptcy is right, but you may not have the ability to go through the process alone. You may want to hire an attorney, but you can’t afford the fees to do so. In Chapter 13 cases, many attorneys’ fees become part of the monthly payment plan to creditors. Therefore, you don’t have to come out of pocket too much to get help.
You may have to face the fact that bankruptcy is your only path to financial freedom. Digging out of a hole that keeps widening due to interest rates and late fees will only get more and more difficult as time goes on.