The benefits of filing for Chapter 13 bankruptcy

On Behalf of | Oct 23, 2019 | Bankruptcy

There is no such thing as an income limit for having too much debt. Even if you earn at or above the average wage in Connecticut, you might still be struggling to make all of your monthly payments while also meeting your basic needs. If due dates are flying by and you are on the receiving end of collection attempts and harassing creditors, it may be time to consider Chapter 13 bankruptcy.

Maybe you never thought that bankruptcy was an option because of how much you earn. Chapter 13 bankruptcy is a good option for people just like you who are working, earning regular income but are still unable to pay their debts. It does not matter why you are struggling to pay off your debt, either. Some of the more common reasons that people fall behind on their bills include divorce, medical emergencies and job loss.

Your debts are not immediately discharged in Chapter 13 bankruptcy. Instead, you will have to propose a repayment plan which a judge will have to approve. The plan will last anywhere from three to five years and will cover unsecured debts. Unsecured debts include things like overdue mortgage payments, credit card balances, IRS tax debt, Connecticut utility bills and more.

It is not too late to file for Chapter 13 bankruptcy, even if you are facing foreclosure or a lender is ready to repossess your vehicle. Filing for bankruptcy actually stops both of these processes. You can then include missed mortgage and auto loan payments as part of your repayment plan, giving you the opportunity to keep your house and vehicle. Timely action is important when it comes to dealing with these issues, so be sure to learn more about your options by visiting our website.