Why a Chapter 13 Bankruptcy May Be Your Best Option

If you are deeply in debt and find it impossible or near impossible to meet your expenses each month, you are looking for answers. You likely know about bankruptcy, but that is not an option you want to take. Maybe you think of it as being the last option, and there are things you want to try before you see a bankruptcy attorney. However, you may already be at that place without realizing it because other options are not a good alternative to a Chapter 13 bankruptcy.

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A consolidated loan

This is a bad idea. The reason for this is that you often are required to put up collateral for the loan, and at the top of the list of collateral will be your house. The idea that you will take unsecured debt, such as credit cards, and trade it for secured debt is crazy. A consolidated loan can cost you your home.

Debt repayment plans

There are companies that will create a debt repayment plan, and for a fee, help you pay back your debt. Some of them will claim to be able to negotiate your debt down to a more manageable level. Some of them claim they can reduce or eliminate late fees and interest, but the only person who has the power to do this is a bankruptcy judge. Do not waste your time with these debt relief companies.

A Chapter 13 bankruptcy

This is a form of bankruptcy where your debts are reorganized and often reduced. You make a single payment to a court appointed trustee, who then takes your payment and distributes it to your creditors. Once the time period of your bankruptcy is completed, your bankruptcy is legally discharged by a judge, and you are debt free.

A chapter 13 lawyer orlando fl can give you more information. He or she can look at your finances and explain what assets you may need to liquidate and what is protected. Once you have an attorney, your creditors and lenders will have to speak to them and not you, so you won’t be harassed by threatening phone calls and letters anymore.

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