While you may have heard the term “bankruptcy” used as a blanket for describing dramatic steps to reduce debt, what you should know is that there are actually different types of bankruptcy. Understanding the differences of each may enable you to make a more informed and confident decision about what option would be most beneficial to you. At Christopher Todd Morrison, P.C., we are proud to represent the people of Texas who are facing financial uncertainty and are seeking help in reducing their debts. 

While there is certainly a negative stigma tied to bankruptcy, using this resource can actually be quite advantageous to you in helping you take a step in the direction of financial freedom. The key is implementing new habits immediately upon filing for bankruptcy to prevent the same financial missteps that ultimately required you to file for bankruptcy, from happening again. With your commitment to eliminate frivolous spending and stick to a realistic budget, you can utilize bankruptcy as a tool to help you get back on track to a stable financial future. 

Forbes suggests that the most significant aspect of Chapter 13 bankruptcy in comparison to other types of bankruptcy is the fact that you can initiate a repayment plan that is customized to meet your needs. Part of this restructuring of the debts you owe will be a requirement for you to attend and successfully complete some extent of credit counseling. This resource will allow you to discuss with a professional, what steps need to be taken to allow you to repay your creditors with the money you have available. 

With the repayment of applicable debts, your Chapter 13 bankruptcy filing can provide you with the motivation and empowerment you need to begin repaying your debts in a timely and reliable fashion. For more information, if you are considering bankruptcy, visit our web page.