The holiday season is a time to reflect and reset our goals for the upcoming year. For many people, those goals involve getting finances straight in the new year. Making ends meet can be difficult enough, but that can be compounded for those who struggle under an extremely heavy debt load. Eliminating that financial burden is, or should be, their top priority. Bankruptcy may be their best option.
Chapter 7 Bankruptcy
This is an option for those with little or no exempt assets. These individuals can reset their situation and discharge their debt in as little as 4 months from the time they file without paying off unsecured debts.
Chapter 13 Bankruptcy
For those who may not qualify for a Chapter 7 bankruptcy, Chapter 13 is a great option for them. It allows a repayment plan to be put in place to set finances straight over 3-5 years. This option is advantageous because it allows most people the ability to catch up on secured debts, such as mortgages and car payments, while paying a minimum amount to unsecured creditors. The benefit to Chapter 13 is that you control the repayment to creditors utilizing the Bankruptcy Code at no additional interest. This option is much better compared to continuing to struggle with credit card payments and other options that bury you in interest and fees. At a standard pace, if you are trying to make payments on your own, those payments could take 10 or more years to pay off.
For those who are considering their debt relief options in 2018, bankruptcy certainly deserves some thought. While bankruptcy is rarely anyone’s first choice of action, it is a valuable tool that can help you regain financial stability, return to normalcy and reduce stress in your life.
Having a knowledgeable and experienced Bankruptcy attorney to review your situation and guide you through the process is invaluable. Discuss your circumstances with Attorney Will Lohrman at The Greenberg Law Firm at 630-416-4747 and let us help you determine your best course of action. It is truly a New Year’s resolution worth keeping.