Chapter 13 bankruptcy is an excellent tool for many people who have found themselves unable to get on top of their debt. More than many other forms of bankruptcy, Chapter 13 places an emphasis on enabling a debtor to make good on many debts rather than simply abandoning them. This can make Chapter 13 plans attractive to both the debtors and the creditors in many cases. It offers those who are languishing under a mountain of debt immediate relief from collection tactics, while offering creditors some assurance that they will see some or all of what they are owed repaid.
For many who consider Chapter 13, the attraction of the immediate relief from collections and the promise of a structured repayment plan with the muscle of the federal government behind it is a welcome prospect. However, when it comes time to begin carrying out the repayment, the reality of the situation can be starkly different than what was hoped for. One of the most helpful remedies for this struggle is the ability for payments to be made toward a Chapter 13 plan through paycheck deduction. With a paycheck deduction payment structure, the debtor can make his or her predetermined payments by having them deducted from a payroll check without having the burden of remembering to put that money aside each month.
Paycheck deductions are only one way that Chapter 13 seeks to make repayment more possible for the debtor. Of all the various forms of bankruptcy, it rightly has obtained a reputation as one of the most debtor- and creditor-friendly options. If you believe that Chapter 13 bankruptcy may be right for you, the guidance of an experienced attorney can help you set up a plan with the best chance of not only being accepted by a judge, but also truly helping you solve the debt mess that brought you here.