As a Michigan resident, you have multiple bankruptcy options available. We looked at Chapter 7 earlier, and today Phoenix Law will take a look at Chapter 13 bankruptcy and the possible benefits it can offer.
Chapter 13 bankruptcy may also be called a wage-earner’s plan. This is because the focal point is to use a repayment plan to pay off your debt, compared to Chapter 7’s goal of liquidating assets in order to erase debts.
Of course, the most important thing in determining if Chapter 13 is right for you is seeing whether or not you have the means to make a repayment plan and stick to it. It is crucial for you to be able to make your payments with no delay, as there is no second option if you fail to do so. Sticking to a repayment plan means that you need:
- A steady and reliable source of income
- The ability to create a budget and stick with it
- An agent you trust that can help you come up with a repayment plan
It is also critically important for you to be realistic about the payments you can make. It is better to be upfront about your income and capabilities, rather than stretching the truth and risking being unable to make your payments.
If you are curious about reading more about Chapter 13 bankruptcy and what it can offer you, consider taking a look at our web page. You can learn more about its benefits and potential drawbacks.