When you have decided that bankruptcy is the best solution to your financial struggles, you may have let out a sigh of relief knowing that your issues with debt will soon be in the past. A lot of people assume that filing bankruptcy, specifically Chapter 13, will save them from all of their debts, but assuming this would be wrong. In fact, when you file for Chapter 13, there are a few debts that are considered required, meaning they must be repaid.
The following debts are considered required debts when filing Chapter 13:
- Tax liens.
- Vehicle loan.
- Child support.
In addition to having to pay these debts back, a problem may arise with how you must pay them. For some of these debts, it is possible to have a repayment plan to repay the debt in full over a set period. When you have tax liens, full payment is expected. Making these payments, whether it is in full or over time, may seem like a con of filing bankruptcy, but you will still be getting relief from many of the financial challenges you have faced as a result of credit cards, medical bills and more.
It is not easy to live with debt, which is why many people struggle to make ends meet when they have bills piling up and very little money to make payments. When searching for a way out, many have found that Chapter 13 offered them the debt relief they need. If you have questions about Chapter 13 or have decided to file, an attorney can answer your questions and assist with the filing process.