When an individual decides to go bankrupt they are going to discover that there are two common forms of bankruptcy, one of which they may be eligible for. There is the Chapter 7 bankruptcy and the Chapter 13.
Most are familiar more so with the Chapter 7 as it deals with all of the debt immediately with much of it being discharged; however, there is always a possibility that some assets will have to be sold to meet the debt obligations.
It’s About Perspective
With the Chapter 13 bankruptcy it carries on for a longer period of time and is more of a debt reorganization and repayment plan rather than extinguishing all of the debts. Because of this many individuals are not happy to know that they may qualify for the chapter 13 bankruptcy.
Most individuals are so stressed out from their debt load in dealing with their creditors that they just want to get out from under this responsibility and start fresh. However, there are a lot of advantages to the Chapter 13 bankruptcy and it can turn out to be a most viable solution for many individuals.
What it entails is having a proper financial repayment plan devised that is affordable and can be carried out by the financially strapped individual. This means the creditors will no longer be hounding them as they have to comply with the bankruptcy rulings. Not all of the debts may be paid back in full and some debts may be discharged if they are not part of the priority or secured debts.
It takes time for this plan to be successful at the same time it allows one to meet the financial obligations and rebuild their credit and is an ideal solution when there are no other ways or means to handle the present debt situation.
It is important to use an experienced New Albany bankruptcy attorney to assist with whatever Chapter of bankruptcy one is eligible for it as it can be a complex area of law.