Deciding to take a serious approach to handling personal debt is a major decision. North Carolina residents who are looking to take action may feel a well-deserved sense of accomplishment as choosing to take on such an endeavor can set parties on a path toward financial freedom. For some, Chapter 13 bankruptcy may offer the most interest when exploring options.
Chapter 13 bankruptcy essentially involves reorganizing a person’s debt in order for him or her to repay the outstanding balances over time. Typically, the process lasts between three to five years. In order to qualify for this relief avenue, individuals must meet certain income and debt requirements. Too little income or too much debt may disqualify parties from following this particular path.
If individuals qualify, their repayment plan will provide information on how the debts will be paid. Priority debts will be addressed first and may need to be paid in their entirety. Next, any secured debts that exist — such as loans — will require regular payments. After these payments are handled, attention will then go toward paying unsecured debt, like credit card balances.
Chapter 13 bankruptcy can act as a beneficial debt relief option for many individuals. North Carolina residents who are interested in this route may wish to gain additional information to determine whether they may qualify. Parties ready to move forward or obtain more knowledge may wish to consult with bankruptcy attorneys. These legal professionals may have the ability to assess particular details of individual cases and advise on the most viable courses of action.
Source: autocreditexpress.com, “Chapter 13 and You: A Journey of Repayment“, Meghan Carbary, Aug. 9, 2017