Hard economic times can fall on anyone, even those who are high wage earners. When debt begins to pile up and become unmanageable, even those who have significant yearly income may realize that they are in serious financial peril if they do not take immediate action.
A well-planned bankruptcy can offer much-needed relief to people with varying incomes and debt burdens. High wage earners often qualify for Chapter 13 bankruptcy, which creates a structured repayment plan and does not always require the debtor to forfeit property. A Chapter 13 reorganization focuses on helping those with reasonable expendable income regain control of their finances while halting collections efforts, reorganizing the debtor’s assets to repay some or all of what they owe.
If you suspect that reorganization may be a good fit for your circumstances, be sure to use the legal tools and resources available to ensure that you make the most of the bankruptcy process. Entering into bankruptcy without a strong grasp on the process may ultimately leave you in a worse financial position than you were in beforehand.
Stop collections calls immediately
One of the most relieving aspects of bankruptcy is that it halts all collections efforts on those debts. As long as the debtor remains within the guidelines of the bankruptcy, debt collectors cannot continue to pursue repayment. For many people who find themselves silencing phone calls constantly, this relief alone may make the whole process worth the effort.
Get relief without sacrificing your property
By reorganizing income to repay debts, Chapter 13 focuses on the existing income that the debtor has instead of requiring that the debtor give up property and have little or nothing when it comes time to rebuild. Those who choose to use Chapter 13 often do so because it allows them to keep much or all of their property, although they do still suffer damage to their credit score and ability to borrow for some time after.
Despite the potential for the debtor to recover financially without sacrificing valuable assets, Chapter 13 does not cover all forms of debt. Reorganization does not generally wipe out student loan debt or child support debt, for instance.
If you have debt that is piling up higher than you can handle, do not waste important time on inaction. Discover for yourself the debt relief opportunities you have waiting.