When many or even most of us hear the word “bankruptcy “it almost always conjures up negative images of an individual losing everything they have to the big bad creditors or the banks. This is not the case at all. There are different bankruptcy options available to American citizens that allow them to retain their dignity and even in some cases, their assets.
Chapter 13 protection is a viable option for many and is terribly misunderstood by most. Chapter 13 is a court approved process by which the debtor is allowed to make manageable payments to their creditors over a 3 to 5 year period. The payments are repaid in one monthly sum to the trustee for disbursement to creditors. Creditors are then no longer allowed to contact the debtor directly and must abide by the plan approved by the court.
By utilizing Chapter 13 protection you may be able to avoid a foreclosure on your home in addition to preventing a repossession of your vehicle. There are other benefits as well including having collection attempts by the IRS stopped for back taxes and forcing them to accept a pre-determined payment plan as well. Contacting a qualified bankruptcy lawyer and determining if you are eligible for Chapter 13 protection may turn out to be the smartest thing for you and your family.
The questions you need answered and advice you need moving forward are all taken care of eliminating the stress and fear of the unknown.