Many Texans who are struggling with debt make too much to qualify for Chapter 7 bankruptcy. As a result, these individuals may need to turn to Chapter 13 bankruptcy to find debt relief. This type of bankruptcy allows an individual to eliminate some debts after successfully adhering to a payment plan for a specified period of time. But how does a bankruptcy court determine how much a Chapter 13 filer must repay under his or her bankruptcy plan?
Owing a significant amount of debt can have various negative implications for your life. In addition to the fact that you have bills you cannot pay on your own, you may also be dealing with calls from creditors, letters in your mailbox and more. These attempts to collect on what you owe can add additional stress to an already difficult situation.
Previously, this blog discussed the difficulties of trying to discharge student debt, and the fact that many older Americans find themselves saddled with burdensome student loans. A new report is again highlighting the financial struggles student loan borrowers are facing.
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.