While it is no secret that facing financial challenges can be a daunting experience, preparing to seek relief from the trials of debt can still be intimidating. Many individuals in Maryland who face similar issues might not fully understand their options and even if an outlet such as bankruptcy may be the healthiest path, some might be hesitant to initiate the process. Knowing one’s options and the possible benefits of seeking relief via Chapter 13 bankruptcy could be integral to preparing to make informed choices about the situation and prepare to take the necessary steps to protect one’s future.
Knowing the possible benefits of and what to expect from Chapter 13 bankruptcy could prove vital to determining if reorganization may be a viable option and some topics to address prior to choosing a path may include:
- Payment plan: Chapter 13 Bankruptcy may allow a person to pay down debts over a given period, may help reduce monthly debt payments, and could help provide protection against creditors via the automatic stay.
- No liquidation: Since this process calls for the reorganization of finances and involves debt payments, one might not have to relinquish possession of assets through liquidation.
- Debt discharge: Once a person completes the payment plan, any remaining debt balances associated with the process may be eligible for discharge.
- Rebuilding credit: While a bankruptcy filing may remain on your credit for several years, you might be able to begin rebuilding your credit within one to three years of initiating the reorganization process.
However, it may also be helpful to note that bankruptcy might not help address some forms of debt and that the repercussions of failing to meet payment obligations could prove severe in nature.
This may only cover a brief list of the possible benefits of Chapter 13 bankruptcy and seeking insight on every vital topic to address may be integral to choosing the best path available. Individuals in Maryland who struggle under the weight of debt and remain uncertain of how best to approach the situation may find it helpful to consult with an attorney for advice on all their options and the pros and cons of each in turn. Such advice could help place a person in a better position in which to seek debt relief through the appropriate channels and begin working toward pursuing a brighter financial future.