Almost everyone can understand what it's like to experience financial trouble from time to time, but you may find that your financial woes extend far beyond what you can ever manage on your own. Like other New Jersey consumers, you may not be able to manage your debt and catch up on your payments.
When facing this type of precarious financial situation, you would be prudent to consider the benefits of bankruptcy. While this step is rarely a person's first choice, this option could allow you the opportunity to secure a better financial future. Depending on the types of debts you owe and your objectives, Chapter 13 bankruptcy may be the right option for you.
Why Chapter 13?
Chapter 13 bankruptcy is particularly useful for people who are facing threats of foreclosure and want to save their home. While Chapter 7 is a popular choice for many reasons, you may not be eligible for this choice, or it simply might not be the right option for you. Some of the benefits of filing for Chapter 13 bankruptcy include the following:
- It takes a period of three to five years to complete a Chapter 13 bankruptcy, yet that gives applicants ample time to pay off debts and follow the terms of their bankruptcy plan.
- In many cases, Chapter 13 allows an applicant to keep his or her property.
- This option reorganizes your debts, which allows you to make manageable payments over time.
- Upon filing for Chapter 13 bankruptcy, the automatic stay will go into effect, which will halt all debt collection efforts.
While it may take longer than a Chapter 7 bankruptcy, Chapter 13 could be the right option to suit your individual goals. A complete evaluation of your financial situation could determine that this is the right path for you to eventually achieve a stronger, more stable financial future.
How can I make the right choice?
The decision to file for bankruptcy is not an easy one to make. Fortunately, this is not a decision you have to make by yourself. You may find it beneficial to reach out for experienced guidance. With help, you can navigate the potentially complex process of whichever chapter of bankruptcy is right for you.
As you consider the bankruptcy options that can help you deal with your debt and gain a better financial footing, it is always beneficial to have a complete understanding of your rights and the various choices available to you.