Many individuals in California and other states across the nation carry some form of debt with them. While debt because of a home, vehicle or other major purchases is very common, when individuals accumulate consumer debt, this debt has the tendency of getting out of control. Whether you rack up a balance on a credit card for consumer goods or because of medical bills, it is important to understand that there are ways to address these financial troubles.
Although filing for bankruptcy seems like a scary process to go through, it is a process that can offer many solutions and eventually a fresh financial start. Thus, gaining a full perspective of your options and how filing for bankruptcy could impact your life immediately and down the road could help you make a very important decision.
How can Chapter 13 bankruptcy help you address your debt problems? Unlike a Chapter 7 filing, a Chapter 13 helps a debtor construct a repayment plan. This generates an end goal and a tangible solution to a debt free life. Additionally, a Chapter 13 bankruptcy can work to protect certain assets, eliminate interest, help you stay in control of your assets, consolidate you debts, eliminate junior mortgages, reduce your payments, eliminate unsecured debt, protect co-signers and avoid liquidation of your assets.
One should note that the Chapter 13 bankruptcy process can stop debt collectors from taking certain actions. These typically include tax collection, lawsuits, tax penalties, harassment, bank levies, evictions, wage garnishments, foreclosures, repossession, utility disconnections and collections of public benefit overpayments.
Getting out of debt is important to anyone struggling to pay their bills or make ends meet. When debt becomes overwhelming, it is important to have a solution. Filing for bankruptcy could be the answer; therefore, you should consider how this process could benefit you and how you should go about the process.
Source: MoneyqandA.com, "How Chapter 13 Bankruptcy Can Affect Your Future," Hank Coleman, Accessed Sept. 17, 2017