Filing For Bankruptcy? Why You Should Consider Opting For Chapter 13

Bankruptcy is a protection that was put in place to protect people from total financial ruin. It doesn't take much for a person to fall into a situation where it becomes impossible for them to handle their debts. A single medical bill could be enough to wipe out your savings and if you go without work for a long time you could eventually get so behind that you just can't catch up. If you've come to the conclusion that you need to file bankruptcy read through the article below to see why Chapter 13 might be the best option.

Chapter 13 Lets You Keep Your Belongings

The thought of having to give up a house that you worked so hard to pay for can be devastating. You may be in the throes of foreclosure and think that there is no way to save the property. However, the truth is that you might be able to stay in your home if you file a Chapter 13 bankruptcy. 

Chapter 13 bankruptcy is also known as the "wage earners" bankruptcy. It is specifically for people who have jobs or reliable sources of income and can afford to pay a set monthly rate for all of their current expenses. Your bills will be consolidated into a single payment that must be made to a court-appointed trustee each month. This continues over a three to five year period of time, at which point you are able to keep your goods and be completely out of debt.

Have Co-Signers? A Chapter 13 Bankruptcy Can Help

It's tough to maintain a good relationship with a person who has co-signed on an item that you've defaulted on. Maybe one of your parents signed their name so you could purchase your dream home or a trusted family friend offered to co-sign on that semi-truck that you use for work purposes. You don't want to disappoint those you care about but understand that you can no longer afford to uphold the terms of the original loan contract.

The answer is to file for Chapter 13 bankruptcy. This particular chapter offers protection to the co-signers. As long as you continue to make your scheduled payments your co-signer shouldn't have to worry about having to foot the bill.

The sooner you file for bankruptcy the quicker you can start to breathe easy again. Talk with a bankruptcy attorney today so they can start the process of filing for a Chapter 13 bankruptcy.