As the new year begins, you may worry that your financial problems will follow you around forever. However, it is important to recognize that you have options to get a fresh start so you can finally feel hopeful about the future. While the unfortunate and inaccurate stigma about filing for bankruptcy persists for many people, Chapter 13 bankruptcy relief can give you and your family the fresh start you need to move forward with confidence.
Understanding Chapter 13 Bankruptcy
When you file for Chapter 13 bankruptcy, you will establish a payment plan to help you gradually repay some of the debt you owe (the rest of the dischargeable debt gets wiped away). One of the major benefits of a Chapter 13 bankruptcy filing is that you can stop a foreclosure on your home and keep your assets in your possession. The payment plan allows you to pay off the debts you can afford (keep in mind you will need to have a steady source of income to file a successful Chapter 13 bankruptcy) and any remaining debts at the end of the three to five year payment period will be discharged (wiped away).
How Chapter 13 Bankruptcy Can Give You a Fresh Start
Bankruptcy can sound intimidating or even shameful to many people. However, bankruptcy is designed to give hope to people struggling with financial issues. In a 1934 Supreme Court decision, the Court stated that bankruptcy “gives to the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.” At the end of the repayment period, those who have successfully upheld their obligations have the remaining debts discharged, allowing them to enjoy a financial fresh start. Additionally, those who go through the Chapter 13 bankruptcy process learn new credit and financial management skills to help them make smart and sustainable decisions in the future.
Discuss Your Goals With a New York Bankruptcy Attorney Today
Coping with large amounts of debt can be stressful and overwhelming. However, you are not alone. Many individuals and families face significant financial struggles, many of which the pandemic has exacerbated and intensified. If you are ready to take control of your financial situation, reach out to a trusted and compassionate New York bankruptcy attorney to discuss your options for obtaining the fresh start you deserve. Together, you and your attorney will move through the bankruptcy process and toward a brighter financial future.