Getting out of debt as a single parent can be difficult. Even if you have a job, your income may not be enough to keep up with your debt payments while providing for your children.
With an income source, you may be eligible to file for Chapter 13 bankruptcy. This can benefit you and your children in many ways.
Your payment plan accounts for living expenses
When lenders calculate your monthly payments, they do not care about your daily expenses, such as food, clothing, shelter and education. Chapter 13 bankruptcy involves evaluating your daily expenses and allocating disposable income toward your debts, so you can pay them off while continuing to meet your children’s needs.
You can keep the family home
One of the most frightening aspects of debt is the threat of losing your house, especially if you have children. Chapter 13 often allows you to keep your home as long as you continue paying the mortgage.
You can reduce your stress
When you file for bankruptcy, most collections actions against you must cease. Creditors can not contact you, sue you or garnish your wages. These restrictions take effect as soon as you file, giving you peace of mind and more time and energy to focus on your family.
You can rebuild your credit
Many people worry about the impact bankruptcy will have on their credit. However, when you are deep in debt, your credit is already suffering. Chapter 13 gives you the chance to pay some of your debt so you can start working toward financial stability and a brighter future for your family.
If you are a single parent who is struggling with debt, Chapter 13 bankruptcy may be a step toward a better life for you and those who depend on you.