You’ve fallen behind on several of your debts, but you don’t feel like you won’t ever be able to pay them back. You know that you’re dealing with hard times right now, but you also feel obligated to pay what you owe.
It’s important for you to understand that there are options available for you so that you can get your finances back on track. In fact, you may be able to reduce what you owe and still pay a fair proportion of the debt off over time.
Chapter 13 bankruptcy is one good way to pay back a portion of what you owe. For some people, the idea of making payments and settling that debt is more appealing than attempting to have the entire debt discharged, though neither is right or wrong. Bankruptcy is something that you may have the right to pursue if you’re struggling with debt, and either liquidation or Chapter 13 repayment plans can be beneficial. Neither is better than the other or should be looked down upon.
Chapter 13 bankruptcy will have you pay a portion of what you owe over time, usually over the course of three to five years. At that point, any qualified debts that remain may be discharged by the court.
During a Chapter 13 bankruptcy, you do have to pay on time each month. The amount you pay will depend on your circumstances and what the judge thinks is fair and appropriate. Your attorney can help you set up your bankruptcy plan, so you can repay what you can while also getting the break that you need while your finances recover.
