If you are currently drowning in debt, you are not alone. In the United States, thousands of individuals face debt loads that they cannot repay for multiple reasons. While this can be a frustrating situation to be in, the good news is that you have options.
Depending on your personal finances and income, you may be eligible for one or more types of bankruptcy. In general, chapters 7 and 13 are the most common. While there are benefits to each route, Chapter 13 flexibility can offer you more wiggle room if you want to keep your current assets.
Chapter 13 allows for unexpected changes
Even after filing for bankruptcy, sometimes the unexpected happens. Luckily, Chapter 13 provides some flexibility for these situations. For example, if you experience an unforeseen reduction in income or an increase in expenses, there are ways to amend your payment plan so that you can adjust your costs accordingly. Often, this involves lowering the monthly payments that you have to pay.
Unsecured debt payments are flexible
Another thing to keep in mind with Chapter 13 bankruptcy is the flexibility surrounding unsecured debt payments. When it comes to debt, such as outstanding credit card bills, this form of bankruptcy provides debtors with more options to prioritize the necessities in their lives, such as keeping their homes and vehicles while alternative plans exist for unsecured debt.
Getting out of debt is often a stressful process, but filing for bankruptcy can offer you more freedom and flexibility than you realize. If you want to keep your assets while paying back your debts, Chapter 13 may be the right solution for you.