Bankruptcy is one of the most effective ways to deal with debt that is unmanageable. Many people spend years trying to pay bills they simply cannot afford. This only gets them further into debt and makes it more difficult to get credit to purchase a home or a car. Although bankruptcy usually has a negative affect on a person’s credit score, those who have damaged their credit with years of late and missed payments might not see much of a difference if they file Chapter 13 Bankruptcy in Palm Springs CA.
Because people want to take care of their responsibilities and pay their debts, they tend to put off filing bankruptcy until they are in serious financial trouble. By the time the mortgage company is ready to foreclose on the house or the tow truck is there to repossess the car, Chapter 13 bankruptcy could have been well under way and these problems could have been avoided. Chapter 13 Bankruptcy in Palm Springs CA is not designed to erase legitimate debts. Instead, it gives help to people who want to pay their bills but don’t have enough money to do so.
An experienced legal professional, such as Samuel F. Trussell Attorney At Law, may explain the pros and cons of each type of debt resolution so their client can understand how they might be affected by their choice. While it is certainly possible to pay off a lot of debt over a long period of time, the amount of hardship it can cause a family may have serious consequences. Financial stress is hard on a marriage and it is quite difficult to save for the future while making payments on incredibly high amounts of debt.
Chapter 13 is only one option people have for resolving their debt issues, but it is one that allows them to retain their integrity, by paying as much on their bills as they can afford. At the end of the repayment period, unsecured debts that have not been completely settled may be discharged so individuals and couples who tried their best to pay off these debts can get a fresh start without the worry of late charges and interest payments on old bills.