A Chapter 13 Offers a New Life
A Bankruptcy is not to be desired in life, but sometimes it is necessary. Two years ago you were making good money, married with two kids, had a house, two new cars and probably $20,000 to $50,000 in credit cards. You have never missed a payment on anything in your life. The credit cards are sending you offers of zero percent.
Then it happens. Your company is down sizing, and you get the pink slip with two weeks pay. You think to yourself- “I can find another job. It will be fine.” Now two weeks have passed and there have been no job offers. Unemployment is going to pay $1300 a month, which will cover the house payment and utilities. In order to make the car payments you use cash advance offers from some of the credit cards.
As the months go bye, you start missing payments on credit cards, and the calls start. Charging is no longer an option. One month you pay house, and the next month you make the car payment. Finally you get a job offer that does not quite pay what you were making, but it is close enough, so you take it.
At this time you are three months behind on car and house payments and you have not made a payment on the credit cards in several months. Bankruptcy has always been the big, “I would never do that!” This is where a Chapter 13 would come in and help with the arrears on the house and cars and let you pay something on the credit cards through a plan. At the end of the plan you can begin rebuilding your credit.
