Drowning in debt can feel hopeless, but there is a lifeline: Chapter 13 bankruptcy.

Chapter 13 bankruptcy, also called reorganization bankruptcy or a wage earner's plan, allows individuals with steady incomes to create a manageable repayment plan to address their debts.

Unlike Chapter 7 bankruptcy, which involves the liquidation of assets, Chapter 13 is a “reorganization” bankruptcy. Instead of selling off your assets, you create a court-approved plan to repay all or a portion of your debts over the next three to five years.

Who Qualifies for Chapter 13?

There are income limits for Chapter 13, but they're pretty generous. The key factor is your ability to afford a monthly payment plan. Here are some general guidelines:

• Regular income: You need a steady source of income to fund your repayment plan, whether from employment, self-employment, retirement benefits, or other sources.

• Prior filings: It is possible to refile bankruptcy with a prior dismissal or recent discharge. Contact Craig Black today to discuss your options.

• Completion of credit counseling: Before filing for Chapter 13 bankruptcy, people are often required to undergo credit counseling to help them with budgeting, debt management, and alternatives to bankruptcy. Upon completion, they receive a certificate, which must be filed with the bankruptcy court as part of the petition.

Why Consider Chapter 13?

There are a few factors that can make Chapter 13 a good option for many people:

• Saving a home from foreclosure: Behind on your mortgage? Chapter 13 lets you catch up on missed payments and keep your house.

• Prevent wage garnishments: Adhering to your bankruptcy plan will prevent creditors from garnishing your wages.

• Prevent lawsuits: While in Chapter 13, creditors cannot sue you for consumer debts.

• Stopping repossession: Facing car repossession? A Chapter 13 plan can help you get your car back and restructure your loan.

• Tax relief: Chapter 13 can help you repay back taxes in a manageable way.

How Do I Start?

If you're considering Chapter 13, call The Craig Black Law Firm today at (678) 888-1778 and schedule a free consultation. We'll help you determine your qualifications and explore your options.

Bankruptcy isn't a sign of failure; it's a sign of hope. Chapter 13 bankruptcy can be a valuable tool for individuals struggling with debt and looking for a path to financial stability.