Bankruptcy may be the last thing you ever wanted to do. It may, however, be a necessary step to secure a debt-free future for you and your family. Declaring bankruptcy has changed over the years, and there are different ways of making it work for you.
If it is your sincere wish to pay back your debt, Chapter 13 bankruptcy may be the best choice for you. Chapter 13 bankruptcy is more of a restructuring of your debt. Rather than erasing your debt, it gives you the opportunity to stop the collection calls and the foreclosures, while at the same time allowing you to be responsible and to make every effort to pay the debt you have accumulated. If you own a business, this may be the best option. Your business can continue to make money while your debt is restructured so that it isn’t hanging over your head.
Once you have made the decision to file for bankruptcy, you will be required to see a debt counselor. This is a good thing. You will learn ways to handle the debt you have, as well as learning ways not to get into the same situation again. With chapter 13, you will be assigned a trustee who will oversee the restructuring. It may be that your late payments are added on to the end of your payment schedule for your large debts. You would then be responsible to make payments to the trustee who will make sure that the debts are paid down.
With chapter 13, your debt is not erased, but it is made affordable.
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