Although the economy appears to be steadily improving, the stark reality is that many Americans continue to struggle with personal debt. As a result, many are living paycheck-to-paycheck, and any unexpected expense can quickly derail their already tight budget. One option individuals often turn to for assistance in combating these unexpected expenses is payday loans, which can quickly turn into a debt spiral.
Living with debt can feel overwhelming and endless. One may feel like he or she will never find financial relief, but filing for bankruptcy could be the answer. Chapter 13 bankruptcy is centered on a repayment plan that, overtime, seeks to repay creditors as fully as possible. However, many individuals who successfully pursue Chapter 13 have a significant number of debts discharged once their repayment plans are completed. While this is great for a debtor, it can be terrible for creditors. As a result, they often have an interest in the terms of a debtors repayment plan. To ensure that the process and the bankruptcy plan is fair, it must be confirmed by a court of law.