Debt can seem insurmountable for someone that is struggling with it. It can often cause loss nights of sleep and many people that are working their best to pay off these debts can find themselves facing a losing battle. If you’re in a position where your debt feels insurmountable, you may want to consider the idea of chapter 13 bankruptcy in a debt repayment plan.
Of 1000 consumers that carried a credit card balance of at least $500 were surveyed and 33% suggested that they were regularly losing sleep about their credit card balance. Consumer credit card debt in the United States has hit over $1 trillion and at that kind of debt it is completely understandable why so many people are facing a poor financial position with their own repayment plans.
Chapter 13 will help you to establish a debt repayment plan that can take place over 3 to 5 years. This will help you to establish a plan with your creditors that can be used to help you meet the factors associated with your debt. A chapter 13 bankruptcy plan will give you 3 to 5 years to meet a repayment plan and at the end of your repayment plan your debts will be forgiven. When the nature of your repayment plan is met you can be a much better financial position because your debt is completely discharged.
After a debt repayment plan you may have to take on a bit of credit rebuilding in order to qualify for a lower interest rate. Having a struggle with a higher interest rate on future credit products is likely a far greater option than being stuck with thousands of dollars in debt that you will never be able to repay back.
If you are struggling with your debts contact our bankruptcy attorneys today. We can create a debt repayment plan under Chapter 13 bankruptcy that will help you to create a better financial future.
This post was written by Trey Wright, a bankruptcy lawyer in Tallahassee. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.