There are many reasons why a person in the state of Texas might start to struggle to repay debts that they acquired. There are countless uncertainties in life, and unexpected occurrences often come with financial burdens. For example, losing a job can happen quickly, and health problems can lead to extortionate medical bills.
If you start to face financial hardships, you may want to consider the benefits of filing for bankruptcy. A bankruptcy filing is often looked at as a “last resort.” However, by filing relatively early in your struggle with increasing debt, you may be able to shorten the repayment period. Before filing for bankruptcy, you should take the time to understand more about what types of sacrifices it requires.
How long does it take to pay off debts with a Chapter 13 bankruptcy?
When undertaking a Chapter 13 bankruptcy in the state of Texas, the repayment period will last between three and five years. It is important to realize that this period will consist of living on a very stringent budget, with almost all of your disposable income being used to repay your debts.
While it takes a great amount of discipline, it is always a realistic plan, because you will be able to create a plan based upon your household’s income and the expenses that you have. You will never be required to pay more that the disposable income that you earn.
What repayments have to be continued during a Chapter 13 bankruptcy filing?
You will benefit from an automatic stay when you file for Chapter 13 bankruptcy, which means that you will be granted a relief from creditor collection efforts. However, this does not mean that you won’t have to continue paying off your mortgage while you are engaged in a Chapter 13 plan. In addition, you must continue to obey any child support or alimony obligations that you have in order to be discharged at the end of the payment plan.
If you are struggling financially in the state of Texas, filing for Chapter 13 bankruptcy may give you the support that you need to be free of debt.