Like many others, you may have found it difficult to keep the spending at a minimum during the holiday season. Now, you are concerned with paying off or paying down your credit card debt. But there may be another solution to help lessen the financial burden. Instead of facing high interest rates, late fees, and living paycheck to paycheck, it may be time to consider filing for bankruptcy. With interest rates as high as they are, paying off debt has never been more difficult. If you are struggling to pay bills and get a handle on your debt, here are some things you should know about filing for bankruptcy that may help you decide it’s time to call Leslie Craft and talk about your options.
Build Your Savings Account
Filing for bankruptcy could help you meet a New Year’s resolution of saving money. If you file for bankruptcy and your debt is discharged, you could be left with extra money each month allowing you to save money and build your savings account back up for future emergencies. If your debt is not discharged completely, you can still work on budgeting and saving. Once you are entered into a repayment plan, all of your debt is combined, and it will be easier to plan your payments. Plus, you will no longer be bothered by creditors!
Pay Off Your Debt
Credit card debt can be overwhelming and cause anxiety, stress, and fear. Pile that on top of medical bills, groceries, and other necessary purchases, and you can feel like you are drowning. Filing for bankruptcy can potentially clear you of all debts. Once you file and your debts have been discharged, or a repayment plan is put in place, you can focus on your New Year’s Resolution of financial freedom!
Start the New Year Off Right
Financial difficulties can stem from anything, including a divorce, the loss of a job, or even a medical emergency. Filing for bankruptcy can feel like a scary thing, but it can also set you up for success. Rid yourself of financial burdens, obnoxious creditors, and substantial stress when you file. Filing for bankruptcy can give you the clean slate you need to begin 2025 debt-free. Your options for filing for bankruptcy include:
Chapter 7, allows for an individual to cancel many or all debts, including credit card debt and medical bills. Depending on if you are up to date on your payments, certain property like your home or your car may be protected. If you are filing for Chapter 7 bankruptcy, you must pass a “means test”.
Chapter 13, is a reorganization plan that allows for an individual to pay some or all of their debts based on a few factors, including how much money they earn, which property they intend to keep, and the amount of non-exempt property they own. You can use a Chapter 13 filing to propose a plan to keep assets you may be behind on paying, including your home or your car. You can also use it to repay taxes you owe to the IRS without interest.
If you are still trying to determine if filing for bankruptcy is right for you, Craft Law Offices can help. We can help walk you through the process of bankruptcy, explain what you can expect upon filing, and assist you on your journey to financial freedom. Schedule your free consultation with a professional bankruptcy attorney today.