If you have considered filing for bankruptcy, you are not alone. Hundreds of thousands of people file for this form of financial relief every year, in hopes of ridding themselves of debt. Bankruptcy allows people to better manage their debt and, in some cases, become free from their financial burdens. In a Chapter 13 bankruptcy, you will be able to work with creditors, reorganize your debt and make manageable payments over a three to five-year period. After this time, your bankruptcy will be discharged and you can begin with a fresh financial start.
If you are burdened by financial expenses, such as credit card debt, medical expenses and mortgages, you may find relief through bankruptcy. While there are several types of bankruptcy available, Chapter 13 allows you to keep your property while you continue to make payments on your homes and vehicles. This debt reorganization plan helps people restructure their debt in a way that reduces their payments, and gives them three to five years to repay the unsecured debt. At The Law of Douglas J. Powell, P.C., we understand the dramatic effects that Chapter 13 bankruptcy can have on your credit score, and how bankruptcy may help to relieve your debt.
Whether you've been living in your Austin home for only a few years or have enjoyed residence in your community for decades, facing a serious financial crisis that threatens foreclosure is never easy. In fact, it can be quite scary and overwhelming, especially if you think everything you've worked so hard to own might be at stake. The need for immediate debt relief is nothing new, as many business and/or homeowners have been where you are now. But finding the right solution to a particular problem can be quite challenging.
Chapter 13 bankruptcy allows debtors to reorganize their debt in such a way that they are able to repay their creditors within three to five years. As a result, people are able to save their homes from foreclosure, keep their vehicles and retain their property during the bankruptcy process. At the Law Office of Douglas J. Powell, P.C., we understand that going through a bankruptcy can be challenging. We also know that once a bankruptcy is discharged and the debts are absolved, people can regain their financial freedom.
If you are considering bankruptcy as a way to clear your financial burdens, there are several types that are available to you. The type of bankruptcy you choose will ultimately depend on the details involved in your specific situation. While Chapter 7 bankruptcy, otherwise known as liquidation bankruptcy, may lead to the repossession of your home, Chapter 13 allows you to keep your home in most cases. This option may be perfect for families who need debt relief but still wish to maintain possession of their property.
You are lying awake at night worrying about your debts or refusing to answer when the phone rings. You are falling behind on major bills such as your mortgage, car payment or taxes, and you dread opening the mailbox because you know it will contain more warnings.
When people become overwhelmed with credit card debt, medical expenses, mortgages and other excessive costs, they may choose to file for bankruptcy as a way to end their financial turmoil. Chapter 13 bankruptcy is just one option when it comes to filing for debt relief in Texas. However, Chapter 13 allows the debtor to organize a repayment plan that allows them to pay back all or a portion of their debt to creditors. According to U.S. Courts, debtors have three to five years to make payments to the reorganization plan, and at the end of the installments, they should be relatively debt free.