How To Know If Chapter 13 Bankruptcy Might Be For You

Posted on: 25 August 2020

If you have been struggling with your finances for a little while, you might have started to wonder if filing for chapter 13 bankruptcy might be the best choice for you. There are a lot of things that you will need to take into consideration. Here are a few of the things to consider when trying to decide if this is the right path for you to take: 

You Are Being Swarmed With Collection Calls

Once your debt becomes unpaid, creditors will begin to make collection calls. They can call a few times a day if you are not answering. If you don't make enough contact with them, they can even start calling your family or other references that you listed on your loan application. The may only leave a simple message with them, but the point still gets across and it can be rather embarrassing to have a neighbor tell you that the car company is trying to reach you. If you are avoiding the collection calls because you have no idea what to tell them, it might be time to speak with a bankruptcy attorney. .

You Still Have A Source Of Income That Can Pay Some Debt

If you are employed and have some money to put towards your debts, but not enough to pay what each creditor is demanding every month, then chapter 13 might be the best option for you. Through this type of bankruptcy, your debt is not being totally forgiven as it is in a chapter 7. Instead, the courts put together a suitable repayment plan for you, which will help you pay down your debt with the money that you do have available.

You Have Properties That You Don't Want To Lose

Whether you have one property that you live in or you have several rental properties or even a small vacation home that you do not want to have to give up, then filing for chapter 13 bankruptcy is your best bet. If you were to try for a chapter 7, you might find that the courts demand that you sell your properties and that money would then go towards paying off your debt.

For additional assistance, you will want to speak with an attorney that practices chapter 13 bankruptcy law. Call and set up an appointment for a consultation and take a copy of all of your bills and personal debts, along with proof of your monthly income. The attorney will be able to help you decide which legal path you need to take.