If you are struggling with an overwhelming amount of debt, you are likely dealing with calls from creditors, debt collection efforts and other consequences that affect various areas of your life. You may not be able to rid yourself of these things on your own and move forward to a better financial future, but there are options available to you. Through bankruptcy, you could take steps that will allow you to deal with your debt in an effective and efficient manner.
The ideal bankruptcy option for you depends on the type of debt you owe and other details of your financial situation. If you have a significant amount of secured debt, it is possible that Chapter 13 presents the best route by which you can confront certain balances and regain your financial footing. Before you make any important decisions regarding your future, you will benefit from understanding the potential benefits and drawbacks of applying for Chapter 13 bankruptcy.
The pros and cons of this choice
Chapter 13 bankruptcy is not necessarily the best choice for every Georgia adult with a heavy debt burden. It will be important carefully evaluate your debt, your financial capabilities and other factors in order to determine if this option best suits your needs. Some of the benefits of Chapter 13 bankruptcy include:
- You will be able to pay off your debt over time by following the terms of your bankruptcy plan.
- Filing for Chapter 13 bankruptcy will enact the automatic stay. This halts all collection efforts and contact from debt collectors.
- You will be able to keep your personal property while you are under bankruptcy protection.
- At the end of Chapter 13 bankruptcy, you will have the opportunity to rebuild your credit.
- Chapter 13 bankruptcy is an effective way to deal with defaulted mortgages and other types of secured debt.
- This process reorganizes your debt in order to leave you with manageable payments you can sustain long-term.
Chapter 13 bankruptcy typically takes a period of three to five years to complete, which many may see as a disadvantage. However, if you do not qualify for Chapter 7, want to retain all of your personal property or have specific types of debt, this could be the ideal choice for your long-term interests. This process may provide you with a way to overcome your debt and move forward from this difficult situation.