I am amazed at the number of Americans that don’t know the government actually has a government sponsored debt consolidation plan for you! It’s called a Chapter 13 Bankruptcy and it is amazing! The number of benefits of being in a government sponsored debt consolidation plan cannot be understated.
Payment is based on what you can afford to pay!
If creditors want you to pay $800.00 per month but you can only afford $300 a month- bam- that becomes your payment! Creditors don’t dictate your payment, your budget and what you can afford does determine your payment!
You are not required to pay everyone in full!
In the vast majority of Chapter 13 plans, creditors are not required to get paid in full- not even close to it! Say you have 100k in credit card debt. If you only pay 20k over the plan, the balance of 80k get discharged or wiped out! Bam!
Any unpaid balances get wiped out tax free!
This is a huge benefit. Normally, that 80k in unpaid debt would be taxable income to you. But, not in a Chapter 13 Bankruptcy case. There is no tax liability on unpaid credit card debt in a Chapter 13 Bankruptcy.
Creditors are BANNED from contacting you while in the plan!
In traditional debt consolidation plans, creditors are not barred from collecting from you. In a Chapter 13 Bankruptcy plan, they are banned from contacting you.
Skip traditional debt consolidation plans for the government sponsored debt consolidation plan. If they actually called it this and not Chapter 13 Bankruptcy, no one would ever do traditional debt consolidation plans.
Contact A Chapter 13 Bankruptcy Lawyer
When the time is right, or when you are ready, reach out to a Chapter 13 Bankruptcy Lawyer at Kain & Scott. Minnesota’s oldest Bankruptcy Law Firm. You will be glad you did!