Large amounts of debt can overwhelm anyone, especially when backed into a corner. The calls and letters continue to come and future credit is at risk due to negative effects. For Columbia residents considering the benefits of Chapter 13, it is advised that he or she review the different options available to them.
The second, most common type of bankruptcy is Chapter 13. With this form, debts are not eliminated but rather organized into monthly payment plans based on individual finances. The payment plan normally lasts between three to five years and often times ends in a discharge of certain debts, also known as a legal forgiveness of debt. With a longer payoff time, individuals are also able to reduce original payments amounts and maintain financial stability during this unfortunate hardship.
Before filing for a Chapter 13, it is important to understand if you are eligible and which debts are handled. Legal representation can assist individuals who are unsure of their eligibility along with any process once approved. After completing a repayment plan, most individuals are required to show proof that a budget counseling course was completed.
Columbia residents that feel like they are drowning in debt are not alone. Rebuilding an individual’s credit may be possible, even after the effects of filing a Chapter 13, with time and patience. With proper legal representation, it is possible for residents to determine what bankruptcy is right for them and also provide advice and assistance throughout the entire legal process. Becoming aware of all your options is the first step in regaining financial freedom.
Source: thebalance.com, “Chapter 13 Bankruptcy for Beginners”, Carron Armstrong, Accessed on Jan. 31, 2018