You may feel overwhelmed by the debts you have accumulated, but keep in mind – you do have the power to get back on track. There are a variety of financial repayment options that you can choose from to suit your individual financial needs. Many people, especially those who only want to lessen the financial burden, can file for a Chapter 13 bankruptcy to begin a process that will allow them to start on a path towards living debt-free.
A Chapter 13 bankruptcy is where you file a five-page document that shows the court how you plan to pay off the majority of your debts over the next 3-5 years. One of the main qualifiers to file for a Chapter 13 bankruptcy is to have a source of income. In other words, the court can’t approve your plan to pay off your debts if you have no way to pay. The length of the repayment period will depend on your income. For those who are below median income will qualify for the three-year repayment plan. If you are above median income, the payment plan shoots to five.
Of course, many choose to file for a Chapter 13 bankruptcy because they don’t want to lose their car or their house. In fact, many homeowners file for a Chapter 13 bankruptcy in Watertown in order to avoid foreclosing their homes. You’ll be able to keep your property so long as you create a reasonable payment plan that will allow you to pay your bills. In addition, filing for a Chapter 13 bankruptcy will also qualify you for a shorter credit reporting period. Also, if you are able to make a repayment plan that pays off most of your debt, the bankruptcy courts will likely forgive the rest of your debt. Consult an experienced Watertown bankruptcy attorney to help give you the power you need to make the best choice for yourself.