Chapter 13 bankruptcy can be an effective tool for handling debts that you can’t out from under because you are too far underwater. However, not everyone can benefit from this type of bankruptcy. The best way to be sure if Chapter 13 bankruptcy is right for you is to discuss your case with a Chapter 13 bankruptcy attorney. Here’s what the experienced bankruptcy attorneys at Kain + Henehan think you should know about Chapter 13 bankruptcy and how to see if it is right for you.
What Makes Chapter 13 Bankruptcy Special?
There are several different types of bankruptcy that you may qualify for. One of them is Chapter 13, which is designed to let you restructure your debt and pay it off over five years. If done correctly, you can pay back the majority of your debt and satisfy creditors while getting out of debt without having to sell all of your assets.
Why You May Not Qualify
Chapter 13 is not a good option for everyone who files for bankruptcy. It works best for people who have steady, reliable, and predictable income. For example, if you have a high-paying job, such as being a surgeon, then your income is relatively assured. Chapter 13 can help you restructure your debts so that they fit within your means and you can pay them off over an extended period of time.
Chapter 13 can also work well for anyone with a business that gives you a reliable income. For example, being the CEO of an LLC that you founded and that has a steady income could be a good fit for bankruptcy.
The Key is the Payment Plan
Filing for Chapter 13 bankruptcy means that your debts are compiled, and the court works with creditors to reduce how much you owe. That way, you can afford to pay all of it over time with your income. This plan is the key to you getting out of debt, and the court will be strict with you adhering to the plan. If you deviate from it, you could be liable for more of the debt and face issues with the bankruptcy process going forward. This is why it is so important to make sure that you are a good fit before filing for bankruptcy.
Work With a Chapter 13 Bankruptcy Attorney
Going into bankruptcy is stressful and problematic if you try to do it on your own. Take most of the stress out of it by getting help from a bankruptcy attorney. Having legal help on your side can be the difference between successfully getting out of debt and struggling with bankruptcy the entire way through. Before you make any other decisions, contact Kain + Henehan by calling (612) 438-8006 or filling out the online form. That way, we can help you determine if bankruptcy is a good idea for you and which version of bankruptcy fits your needs.
