Bankruptcy isn't always easy, but it can be the right solution for some people who are struggling with money. Whether you're still working and are trying hard to make ends meet or cannot work as a result of your circumstances, it's important to know if and when bankruptcy may be the right choice for you.
Bankruptcy comes in a few forms, but one that is talked about less than it should be is Chapter 13. Chapter 13 bankruptcy is special, because it doesn't require you to liquidate any of your assets. Federally, if you have debts less than $394,725 (unsecured) and $1,184,200 (secured), you can apply for Chapter 13 bankruptcy.
Why is Chapter 13 beneficial?
Chapter 13 bankruptcy is beneficial because of the way it works. You don't have to give up anything you have. Instead, you will set up a payment plan with the court. The payment plan lasts between three and five years, allowing you to pay off what you owe over that time. Anything you haven't paid off in that time, even if you still owe on it, is discharged by the court. You'll then emerge from the bankruptcy without the debts you went into bankruptcy with.
Why choose Chapter 13 bankruptcy?
Some people do not qualify for Chapter 7 bankruptcy, so Chapter 13 bankruptcy is another option. If you have an income and are able to make reasonable payments each month, then this may be the right choice for you. Your attorney can talk to you more about the kinds of bankruptcy that may be available.