Bankruptcy is a lawful way to help get out of debt. There are different types of bankruptcy that you can file. For the everyday person, chapter 7 or chapter 13 bankruptcy can be filed. Depending on your debt and your income, you may qualify for chapter 7 or chapter 13. Chapter 7 is typically for someone that doesn't have any money at all to pay back their debts, and their debts are usually fairly low. If you have a lot of debt, and you have plenty of income, but still can't make ends meet, a chapter 13 bankruptcy is the best option for you. Read on for reasons why you should consider filing for bankruptcy.
Get Back on Track
Sometimes you just need a little bit of help in getting back on track and a chapter 13 bankruptcy can help do just that. A chapter 13 bankruptcy is debt consolidation and repayment bankruptcy. If you have a lot of debt, and you can't seem to dig yourself out of debt, this type of bankruptcy may be the best option for you. You aren't just wiping out these debts, you are actually paying them back, but you are doing so in a manner that works best for you and your income.
Prevent Losing Assets
In chapter 7 bankruptcy, you may be forced to sell assets in order to pay back debts. In chapter 13, you may not have to do this, as you are going to be paying them back. Some assets may have to be sold or given back, but there may be some that you will be able to keep, such as your home or your vehicles. These are important assets you need in order to survive, and you may be able to keep them.
Prevent Getting Further Into Debt
If you continue to live the way you are living, you may be forced deeper into debt without any end in sight. If this continues, you could end up so far in debt that you could end up with lawsuits, foreclosures, or repossessions. When this happens, you could harm your credit and it can be difficult to correct this.
If you are deep in debt, but you can still afford to pay much of your debt back, chapter 13 may be right for you. Talk to a bankruptcy attorney about filing for a chapter 13 bankruptcy to help you get out of this debt.Share