There is sometimes a stereotype about bankruptcy, in which people believe they have to be in absolutely dire straights to file. They need to be unemployed, swamped in debt, facing foreclosure, and with no other way out.

Certainly, you can file in that situation, but you should know that you can also file even if you have a job and make a good income. In fact, Chapter 13 bankruptcy is specifically used by those who earn too much to qualify for Chapter 7. It’s just another option, and it pays to know all of the ones that you have.

Chapter 13 comes with some huge perks. For example:

— You get to use a repayment plan to pay off your debt, so it makes it affordable again. It lines your payments up with your income.

— You can often keep the assets with the highest values. For example, you’ll likely keep your house and your car.

— In some cases, even when you’re behind on paying for these assets, you can get caught back up with the repayment plan.

For instance, you could be a few months behind on your house payments, and you’re worried about foreclosure. You don’t have enough to pay off everything you owe in back payments, but you can afford the standard mortgage payments and a bit more. The back pay may be lumped into the payment plan and slowly taken care of over 3-5 years, essentially getting you caught up again.

As you can see, this is much different than filing for bankruptcy with no job and no income. You’re just rearranging your debt and your payments. If you want to find out more about how it works, our website can be very helpful.