A Common Solution for Individuals Who Are Unable to Pay Debts

by | Apr 4, 2013 | Law

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Everyone is potentially prone to financial hardships, and these situations shouldn’t be a source of shame. In the United States, there are six types of legal filings to consider, but many individuals choose Chapter 13 bankruptcy. Des Moines IA residents often see this possibility as their best option. Keep reading to find out more about whether this solution might work well for you, too.


A Path from Bankruptcy to Financial Freedom


People who are coping with financial difficulties often find that quality of life is severely compromised. The constant calls from creditors and collection agencies can cause extreme amounts of anxiety. Fortunately, this type of filing involves a person arranging a repayment plan with the courts to pay back debt in its entirety, or at least a portion of it. The exact amount that a person is obligated to repay depends on things like income levels and the amount of existing debt.


After working out the agreement, people often breathe a sigh of relief because the phone calls and other and unexpected surprises stop, making it easier to concentrate on the future. Also, when filing Chapter 13 bankruptcy, Des Moines IA residents usually have more time to pay back what they owe in comparison with some other solutions.


No Loss of Property


Other types of filings may force a person to evaluate property and designate some of it as being exempt from seizure, or at risk for being given up if debts are not repaid. In Chapter 13 bankruptcy, Des Moines IA individuals make repayments based upon income, so there is no possibility of losing property.


This alternative is not for everyone, particularly those who have irregular income patterns or otherwise unable to prove ability to make repayments, but for many, it’s an attractive way to find the way to a brighter financial future.




Interested in learning more about chapter 13 bankruptcy? Des Moines IA residents can get more info from Iowa-bankruptcylaw.com