Terry Savage
The idea of Chapter 13 is to give you some breathing room, and an opportunity to repay at least a portion of your obligations. And it may let you keep your most important assets, such as your home or your car. This type of bankruptcy will stay on your credit report for 7 years. During the period of repayment, your creditors cannot file additional negative items on your credit report.
There's one more important thing to note about taking the Chapter 13 route: It's flexible. If you can't keep up with the plan, perhaps because of job loss or illness, you can ask the judge to modify it. Or you can later decide to file Chapter 7. But if you successfully complete the Chapter 13 plan you get the satisfaction of knowing that you lived up to your revised obligations. Given the state of the economy, it's likely that someone you know is already considering bankruptcy as a solution to debt woes. Taking the time to understand the processes and the consequences of filing for bankruptcy will make it easier. And that's The Savage Truth. |
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