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Chapter 13 has benefits and drawbacks for you to consider

Filing for bankruptcy protection is one step you can take to reclaim your finances when things get out of hand. One form of bankruptcy that you might file is a Chapter 13. This is often referred to as a working man's bankruptcy because you will be required to make payments on the case based on a schedule issued by the court.

This option has some specific benefits and drawbacks that you have to weigh if you are considering it. Some of these go hand-in-hand with each other.

Chapter 7 bankruptcy has pros and cons

Filing for bankruptcy is a huge deal because there are pros and cons that you might have to deal with as part of the process. When you aren't able to make payments on the bankruptcy-related debts, you might need to file a Chapter 7 bankruptcy. This is also known as a liquidation bankruptcy because your nonexempt assets are liquidated in an effort to pay off as much of the debt as possible.

In order to be able to file a Chapter 7, you need to meet the criteria of the means test. This is to ensure that people who have ample income after their normal bills aren't filing for this type of protection. People who can afford to file Chapter 13, which requires payments on the debts, won't likely be able to file Chapter 7.

Understand the ins and outs of Chapter 13 bankruptcy

When you have the assets or income that exceed the means test that is used to determine eligibility for Chapter 7 bankruptcy, you might end up filing for Chapter 13. This is often referred to as the working man's bankruptcy because it includes a repayment plan that is based on your income and expenses.

We know that filing for bankruptcy isn't something that you are taking lightly. You have probably tried crunching numbers and even lost some sleep over these debts. When you can't figure out what to do, you have to do something different. Bankruptcy might be that course of action.

Prepare to work to rebuild your credit after bankruptcy

One of the points that people who file for bankruptcy are concerned with is how they are going to rebuild their credit when the case is over. The answer to this isn't very easy, but it is possible to rebuild your credit score over time if you are willing to work at it.

When you are going through bankruptcy, you will have to go through financial education. These are meant to teach you how to use your income to support yourself and how to prepare a budget. They also touch on how to use credit responsibly. You need to pay close attention to what you are being taught because these points can help you on your quest to rebuild your credit.

Don't fall for common bankruptcy myths

Swimming in debt can have a negative impact on your life. When you don't feel like you have any way out because you simply can't make the payments, you might realize that you need to turn to bankruptcy. This isn't something that you should be ashamed of. It is a choice that can help you to regain control over your finances.

Some people might be concerned about filing for bankruptcy because they don't fully understand some of the more basic points about how this can impact their financial future. There are so many myths about bankruptcy's impacts that it is hard to discern what is fact and what is fiction.

Choose your bankruptcy filing type very carefully

Bankruptcy isn't something to be ashamed of. In the past, having to seek this protection was usually kept a secret. Now, we realize that filing bankruptcy is actually more responsible than just avoiding your creditors.

Once you make the decision to file, you need to decide what type you will file. For most people, the answer to this is one of the two common forms of consumer bankruptcy. These are Chapter 7 and Chapter 13. Both of these can relieve you of the financial pressures you feel now; however, they go about this in very different ways.

If you want to file bankruptcy, how fast should you do it?

You know that bankruptcy is coming. You owe $25,000 on various credit cards. You lost your job through no fault of your own -- the company went under and all the employees lost their jobs -- and now you're just working part time.

As a result, you can afford to pay about half of what you owe every month. Things are not looking up. You have made an effort to pay off the money that you borrowed, but you know you will never get there without some blind luck -- like a winning lottery ticket.

Millennials are postponing major life milestones because of debt

According to a new survey by NBC News and GenForward, about 75 percent of American millennials (those between 18 and 34 years old) have some sort of debt. Further, many are postponing major life events like buying a home, getting married and having children because of it.

The life event most likely to be moved down the road is buying a home. Just over a third reported delaying that. Fourteen percent said that they were postponing marriage because of their debt. Slightly more (16 percent) said they were delaying having children.

Asset protection and bankruptcy

Dealing with creditors can be one of the most stressful times in a person's life. Creditors can be relentless, and for the debtor receiving numerous collection calls, threats or collection letters, life can be just short of a nightmare. It often takes a debtor getting to their breaking point before they give in and file bankruptcy. If this is where you are, read on.

If you have never thought of filing bankruptcy, now may be the time. Bankruptcy might be not only your only way out of debt, but for many it is the best way out. Many people fear that filing bankruptcy means they will lose everything they own, but when it comes to asset protection, bankruptcy usually helps more than it hurts.

Saddled with debt from a Parent PLUS loan?

Data from the Sallie Mae program indicates that a mere 48 percent of today's parents have savings earmarked for their children's college education. As a result, many find themselves needing to take loans out to pay, or supplement, the kids' tuition bills.

Older parents often find themselves in the difficult position of needing to subsidize their children's college tuition at the same time that they are approaching (or entering) their retirement years. When these financial circumstances converge, fiscal crises can emerge in formerly solvent families.