Life is all about planning. From your professional life to your personal life, most people believe having a plan will help you avoid most difficulties and challenges that arise in your life. However, when it comes to your finances, even with an agenda, things don't always go as you anticipate them. If you've found yourself in a troublesome situation with your finances, you can recover and move forward with your life.
When most people think of bankruptcy, they fear that they will have to give up a significant amount of their financial independence. You can't buy a home, a car or even open a bank account are just a handful of the scenarios people often bring up. The reality is that filing bankruptcy can actually serve as the first chapter in a book of improved finances. If you have found yourself overwhelmed with debt, Chapter 13 can help.
In the simplest of terms, Chapter 13 is a payment plan. Based on your debt and repayment potential, the courts and the trustee will determine what portion of your debts you will be required to pay back. Based on their findings, you will be assigned a repayment plan that is spread out over the course of several years.
Unlike Chapter 7, since you are repaying back much of your debt, you aren't required to give up your property. With Chapter 13, you can repay your debt without the fear of losing all the assets you worked so hard to attain.
While the road ahead may seem rocky, one of the most important things for you to remember is that the entire process is temporary. Provided you follow the terms of your agreement as required, you can generally look forward to the bankruptcy being removed from your credit within seven years.
Filing for Chapter 13 bankruptcy and paying off your debts is your road to recovery. At the end of the road, you will have the financial independence that you once thought was unattainable. Working along with an attorney won't just make the process of going through the bankruptcy easier, but an attorney, like those at Brent Sorenson & Associates, P.C., can also provide you with assistance on better managing your finances going forward.
Difficult financial situations have the tendency to completely overwhelm your life, as financial issues can cause stress in almost every area of your life. Chapter 13 bankruptcy can help you regain control of your finances and your life.