If you are currently facing huge debts and you don’t know how you will be able to keep up even with minimum repayments, you should assess your options sooner rather than later. By considering your options for bankruptcy, you may be able to prevent losing your home, and you may even be able to reduce the total amount of debt that you owe.
One of the most common bankruptcy chapters is Chapter 13 bankruptcy, otherwise known as a “wage earner’s plan”. As this nickname suggests, this chapter is ideal for a person who has a reliable source of income. The following are some ways to know whether Chapter 13 bankruptcy is right for you.
You have a good income
Those who have a good income may not be eligible for Chapter 7 bankruptcy. Therefore it’s likely that Chapter 13 bankruptcy is their next best option.
You want to avoid losing your home
If you are worried about losing your home because of missed mortgage repayments, filing for Chapter 13 bankruptcy could be a great way to ensure that you don’t. As soon as you file for the bankruptcy, an automatic stay is put into place, which means that your creditors will not be able to take further action on your existing debts. This will give you an opportunity to essentially pause time and catch up with what you owe.
If you are worried about your financial future and want to gain a fresh start from your debts, you should take further action to learn whether filing for Chapter 13 bankruptcy could be the right choice for you and your family.