You may be one of the many Americans who struggle with debt. Many people find themselves in difficult financial situations through unexpected situations such as job loss, a medical emergency and more. It does not take long to accumulate balances you can no longer manage and to start missing payments on your mortgage and other bills. Thankfully, there could be a way out for you.
One of the most important options available to those with significant amounts of debt is bankruptcy. This is a process that can shield you from action taken by creditors, and it can provide you a way to deal with certain types of balances once and for all. There are two main types of consumer bankruptcy, Chapter 7 and Chapter 13.
The benefits of Chapter 13 bankruptcy
Chapter 7 bankruptcy is often the most popular type of bankruptcy because you can resolve the process in only a few months. However, not everyone is eligible for this bankruptcy option, and you may benefit more from Chapter 13. This could be the right option for you if you have a significant amount of secured debt, which can include your mortgage. Consider the following about Chapter 13:
- This option can allow you to make payments on your debt over a period of time. These payments are flexible, based on your financial capabilities.
- As you are making payments, you will be able to keep your property. Collection efforts against you will stop.
- You may be able to obtain new lines of credit, even before the bankruptcy process is complete.
- Bankruptcy will halt collection efforts against you, including foreclosure or wage garnishment.
- Once the bankruptcy process is complete, the court will discharge some remaining balances.
- The bankruptcy process offers you a chance to regain your financial stability and security.
If you are facing struggles with overwhelming debt, there could be a way out for you. You may be able to seek a better financial future through Chapter 13 bankruptcy. If you are unsure of whether this choice could be right for you or how you can pursue a positive outcome to your ongoing money concerns, you may benefit from speaking with an experienced Tennessee professional regarding the options available to you.
