Has it been a long time since your credit score was good? Over the past few years, your debt may have spiraled out of control. You may have debt from loans that you took out and credit cards that you were using to make purchases when you did not have the funds available in your own checking account. While loans and credit cards can come in handy and even seemingly save the day during certain situations, it is easy to overspend when using them, which is the reason most people end up in debt. If you have tried to get yourself out of the debt by paying a little bit of money to each creditor at a time, you might feel like you are going nowhere with it and are not making any progress.
It is normal to feel frustrated when you feel like you are not making a dent when paying off some of your debt. If you still have thousands of dollars that you need to pay to various creditors, you might want to think about filing for chapter 13 bankruptcy with help from a trained lawyer. A lawyer can explain to you the process that is involved, making sure you understand what you are doing and why you are going through with this process in the first place.
Is It Bad to File for Bankruptcy?
One thing you have likely heard people say is that filing for bankruptcy is a bad thing. You should know that it is not a bad thing if it something that can help you get your finances in order, stop struggling so much, and avoid paying off nearly as much debt as you were originally expected to pay off to all your creditors. The only negative thing about filing for chapter 13 bankruptcy is that it will remain on your credit report for up to seven years. Because you already have a lot of debt, your credit score is probably already on the lower side anyway. Although the bankruptcy shows up on your credit report, you will be able to take steps to improve your score over time and rebuild your credit from scratch.
What Makes Chapter 13 a Good Solution?
There are different chapters that a person can file when they are taking the bankruptcy route to get out of debt. With chapter 13, you do not need to sell off anything that you own. You can keep your belongings. However, you will need to agree to payment arrangements that are much more feasible for you. The lawyer you hire to help you get through the bankruptcy will work on negotiating with the different creditors. These creditors include lenders from different banking institutions that have been contacting you in an attempt to collect the funds you owe. During the negotiations, it may be possible to have the amount of money owed drastically reduced, making it a lot easier for you to pay off what you will owe.
Along with getting your debt lowered, a payment arrangement is determined based on the amount of income you have coming in each month and the different expenses that you have. An affordable amount is determined, and you will be expected to pay that amount each month as you work on becoming free of debt that has been in the way for so long.
You might feel a bit nervous about the idea of filing for chapter 13 bankruptcy, but it is a great solution for employed individuals with a steady source of income who are currently struggling because of all the debt they have. If this sounds like you, meeting with a bankruptcy lawyer to talk about the filing process is the best way for you to get started.
Visit websites like georgettemillerlaw.com for more information on filing for bankruptcy.