When debts spiral out of control, individuals and couples still have options to consolidate their debts into manageable payments and regain control of their finances. A Chapter 13 bankruptcy reorganizes debts into payments that are determined by income level. This type of reorganization is, therefore, a way to stop creditor harassment and gain a fresh financial start without losing valuable assets.
One Wisconsin couple is using Chapter 13 bankruptcy to manage between $100,001 and $500,000 in estimated liabilities. Their $100,000 debt to the Marathon County Circuit Court includes legal fees from past trials and subsequent appeals. They also have a judgment for more than $20,000 in credit card debt and more than $20,000 owed to Webko of Wausau, Wisconsin. The couple filed for Chapter 13 bankruptcy on in U.S. Bankruptcy Court.
The couple lost their home to foreclosure in April, and the final discharge date for their bankruptcy has not been set. For people with a regular income, Chapter 13 bankruptcy typically includes a plan to repay part or all of their debts within three to five years.
While this couple’s situation is unique in that much of their debt stems from previous legal issues, the burden of financial challenges is all too familiar to many families in the current economic climate. It is important to be aware of the options available for debt relief.
Source: theNorthwestern.com, “Neumanns file for bankruptcy after lengthy legal battle,” Jeff Starck, Dec. 4, 2012