When you are struggling financially and have persistent and consistent creditors breathing down your neck, the option of filing for bankruptcy can feel like a second chance. However, many people don’t realize that bankruptcy is a serious, federal proceeding that can impact your financial future for decades to come. Here at Groff Law Firm, PLLC, we want to give people the best options for their future, and that can include filing for Chapter 13 bankruptcy.
Chapter 13 bankruptcy is a better option for many individuals as well as businesses. Instead of all your assets being sold to pay your debts, you have the option of potentially keeping your home and halting foreclosure proceedings. As long as you can prove to the court that you can continue to make mortgage payments on a financial plan that has been drawn up by your bankruptcy attorney, you can stay in your home. Chapter 13 bankruptcy is for people who have a steady income, but might be drowning in piles of debt that the income cannot cover.
Rather than erasing your debt (which is not possible in terms of child support, student loans or back taxes), Chapter 13 bankruptcy is more like a restructuring of debt that enables you to pay off your debt within 3-5 years. Your lawyer and the federal courts will work out repayment plans and priority debts. This often creates a payment plan that is more financially manageable, helping individuals and businesses to eventually recover from a serious credit hit.
If you have questions about Chapter 13 bankruptcy, we want to help. Please give us a call today to learn more.