No one wants to deal with debt, but, for the most part, it is a common part of life for individuals in Georgia and elsewhere. While having some debt is fine, dealing with an overwhelming amount of debt can significantly and negatively impact one’s life. The inability to pay upcoming bills, facing foreclosure on a home or even having a vehicle repossessed could mean it’s time to take debt relief action.
While filing for bankruptcy is likely the last thing a person wants to do, the reality is that it is a viable solution to a person’s growing debt. In most cases, it is one’s best option to get a fresh financial start, eliminating debts through either a dismissal or a manageable payment plan.
What happens to your finances during bankruptcy? In a Chapter 13 bankruptcy, a person’s assets are used to assess their ability to repay. In other words, the assets will be used in the creation of a repayment plan, helping the debtor pay off their creditors over time. Unlike a Chapter 7 bankruptcy, a Chapter 13 does not liquidate one’s assets. This means that their assets are not turned over to the court and used to pay off as much debt as possible.
The bankruptcy process can be overwhelming and confusing. Additionally, it can be a huge change for an individual or family, as the filing will remain on one’s credit report for several years. Because it is a major step to take, it is vital that one be informed of the process and what rights they have throughout the bankruptcy process.