If you are overwhelmed by debt and unsure of how you will ever emerge from your financial situation without support, you may find it beneficial to consider the benefits of filing for consumer bankruptcy. Bankruptcy is not the ideal choice in every situation, but it could be an appropriate way for you to pursue a better financial future.
For some New Jersey readers, Chapter 7 bankruptcy may seem like the most ideal course of action. However, due to eligibility reasons and other factors, Chapter 13 could be the right way forward for you. It can be helpful to understand what you can expect from this process and how you can benefit from this specific chapter of consumer bankruptcy.
Understanding the Chapter 13 bankruptcy process
If you apply for Chapter 13, you will find it beneficial to understand what to expect from the process and how you can avoid missteps when walking through it. Chapter 13 bankruptcy also goes by the name reorganization bankruptcy because it actually reorganizes consumer debts and allows the applicant to make affordable payments. The following are things you may find helpful to understand about this process:
- Chapter 13 uses your current income to develop a payment plan that is appropriate and fair according to your financial capabilities.
- There will be a detailed repayment plan that outlines how you will make payments and for how long you will have to pay.
- At the end of your repayment plan, a judge can move to discharge any remaining debts that are eligible.
Before you move forward with applying for Chapter 13 bankruptcy, you would be wise to fully explore all of the options available to you and make the most beneficial choice. When it is your financial future on the line, it is worthwhile to give all possibilities consideration before you choose.
Protecting your financial future
If you are dealing with insurmountable debt, there are legal options available to you. Depending on the type of debt you owe and other details of your individual financial situation, Chapter 13 bankruptcy could be the right choice for you.
Before you file or move forward with a decision that will impact your financial future, you would be wise to seek guidance through a complete evaluation of your case. Seeking input from a legal professional can help you better understand the benefits and potential drawbacks of filing for bankruptcy. A better financial future is possible for you, and Chapter 13 could be the right way to reach that goal.