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Learning About The Process Of Filing Bankruptcy

Last year I had some financial difficulties and I couldn't pay off my debt. The uncertainty of my financial future was adding to my already stressful life. After months of worry, I finally decided to contact a bankruptcy attorney. After discussing my options with the attorney, I decided to file bankruptcy. My name is Kyle Diggler and if you're struggling with debt and considering bankruptcy, I'm here to help you. I'm not an expert, but I want to share my story and my experience of filing bankruptcy with others who are in a similar situation. As you read my blog, you'll learn all about the bankruptcy process so that you'll know what to expect. I'll also share some tips to help you start your life over financially. I hope that my blog answers all the questions you have about filing bankruptcy.

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Learning About The Process Of Filing Bankruptcy

How Chapter 13 Bankruptcy Can Help Your Financial Situation

by Evelyn Perkins

If you are struggling with your debts and making those required monthly payments, you may see no way out of this situation. It's why many people turn to bankruptcy to get themselves financial relief and a fresh start. Here is how chapter 13 can work for you with relieving your debts.

Chapter 13 Works Best With Certain Debts

It's important to look at what kind of debts you are struggling to pay since there are different forms of bankruptcies that treat debts differently. In fact, many people do not realize that alimony, child support, back taxes, and student loans cannot be discharged during chapter 13 or chapter 7 bankruptcy. 

However, there is still a good reason to file chapter 13 bankruptcy when you have these debts. Chapter 13 allows you to set up a repayment plan, which will help you better manage these debts so that they can eventually be paid. This isn't possible when using chapter 7, which does not offer any assistance with paying back these debts. You could end up filing chapter 7 bankruptcy and still end up in trouble due to not making payments.

Chapter 13 Can Stop A Foreclosure

Has your home mortgage lender started the foreclosure process? All hope is not lost, since you can stop it with chapter 13 bankruptcy. This is due to receiving the automatic stay, which is when creditors are not allowed to request payments until the bankruptcy process is finished. Using bankruptcy will consolidate back payments into a repayment plan, which will prevent you from falling behind in your mortgage payment. However, you'll need to continue making your current mortgage payment at its current amount unless you refinance.

Chapter 13 Considers Your Current Income And Debts

The terms of the debt repayment plan is not arbitrary. A fair amount is determined based on the total amount of debts and how much you make per month. This should help make repayment possible when it wasn't possible before. Keep in mind that everything is considered as part of your monthly obligations when coming up with a repayment plan. Your expenses for utilities, groceries, and gas for your vehicle will be factored in so that you can be successful at fulfilling the repayment plan. 

Want more information on chapter 13 bankruptcy? Reach out to a local bankruptcy lawyer for their assistance. They'll review your financial situation and decide if bankruptcy is the best choice for you. 

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