So you finally bit the financial bullet and decided to file for bankruptcy. You may have initially intended to file for Chapter 7 and then learned that you likely wouldn’t qualify.
Congratulations. You have sufficient resources and earning power that while you are ineligible for filing under Chapter 7, means that you have advantages that those filing under Chapter 7 do not have.
You also will not have to worry about losing your possessions in an asset sell-off to pay back your creditors. That can be a real relief if you have amassed significant resources that you want to retain.
Instead, under the terms of a Chapter 13 bankruptcy, you will now have additional time to restructure your debts and devise a workable plan to pay back the creditors that have been hounding you for payment.
For many debtors, this little bit of breathing room and extra time is all that is needed to get them back on the right financial track. Coupled with the credit counseling the court will order, you can thus develop the fiscal management skills that will allow you to live within your means and pay your bills on time.
That can be a huge relief to most debtors. But the process can still seem quite complex and even daunting. That’s why we work closely with our clients to make sure that they understand the Chapter 13 bankruptcy process and adhere to the repayment schedule that was approved by the court and overseen by the bankruptcy trustee.
Failing to honor the terms of the agreement can cause your case to get tossed out of court and your debts not be discharged. If you have any questions, we are here to help you sort them out.
