If you have been struggling with your debt for some time now, you might start thinking about the option of filing for chapter 13 bankruptcy. Of course, not everyone is in a position where filing this chapter of bankruptcy is appropriate, as they might really need to file for chapter 7. Some people might not qualify for any chapter of bankruptcy. To help you determine if chapter 13 is really the best option for you, you will want to review the following information.
You Still Have Sufficient Income
When someone looses their income, or has a drastic reduction in income, chapter 13 bankruptcy might not be for them. If you still make a quality salary that is enough to pay basic bills, you might qualify for chapter 13. Even though you may not make enough to handle the repayment plan requirements of all of the various lenders you owe money to, you might have no problem affording the repayment plan set up by the bankruptcy courts.
You Want To Protect Your Credit
It is true that a chapter 13 bankruptcy will still put a ding on your credit report, causing your credit score to temporarily drop. However, it will not be as bad as it would be if you filed for chapter 7 bankruptcy. It will also be a lot better for your credit than not filing for bankruptcy and continuing to be unable to catch up on your bills for many months, possibly even for many years. Every month your bills go delinquent, your credit reports are marked with that information, driving down your credit score even more. It would be better to file for help from the bankruptcy court and get your debts taken care of as soon as possible. Then, once the bills are caught up, you will be able to keep paying your regular monthly bills on time every month, and this will help improve your credit.
If you have decided that bankruptcy is something that would be beneficial for you, you will want to get in touch with a chapter 13 bankruptcy lawyer. You may already know which lawyer you want to work with. However, if you don't, you can take a little time to research the various bankruptcy lawyers in your area. You can research their experience, how well they are reviewed by previous clients, and how much they charge to work a bankruptcy case for their clients.
Share