The clutches of overwhelming debt can feel suffocating. You may wake up every day wondering how you could potentially pay off the mountains of unpaid balances that plague you. Unfortunately, even if you earn a regular wage, you may not have the means to handle your debt by simply making minimum monthly payments or attempting other unsuccessful methods. Luckily, more head-on approaches exist of which you could take advantage.
If you have a regular income and pass the means test, you may qualify for Chapter 13 bankruptcy. Though you may balk at the idea of moving forward with such a process, bankruptcy offers many benefits that could help you get back on your feet financially.
Rather than liquidating assets, Chapter 13 involves a repayment plan that allows you to gain a more manageable way to pay off your balances. As a result, you keep your property and have more time to pay the money owed. Though this process does take longer than other routes, like Chapter 7, this avenue may offer more flexibility for creating a plan with which you feel comfortable.
You may have an understandable concern that bankruptcy will put a negative mark on your record and damage your credit score. While this process can cause your score to take a hit, outstanding balances, missed payments, repossession and other actions taken against you by creditors can also damage your score and reflect negatively on your record. By filing for bankruptcy, you may at least have the ability to show you made proactive efforts to address you debt rather than ignoring them.
New lines of credit
Some individuals have the misguided notion that they cannot obtain new lines of credit after filing for bankruptcy. However, many lenders often allow bankruptcy filers to obtain loans or credit cards after completing their proceedings. True, you will need to wait a few years before obtaining such credit lines and your interest rates will likely be higher in the beginning, but you can begin to rebuild your credit and lower those rates over time.
Because any type of bankruptcy often gets put into a bad light, you may automatically think this route will not work for you. However, if you have the right information, you may see that Chapter 13 could greatly benefit you. In order to ensure that the knowledge you gain is reliable, you may wish to consult with an experienced South Carolina attorney who can provide specific insight into your case.