Bankruptcy can be a scary thing. It may seem like an endless pit with no way out. However, there is still hope. In this video, you will learn how to deal with bankruptcy.
In this episode, Martha calls in with questions about chapter 13 bankruptcy. As she recounts filing for bankruptcy, you can hear the fear in her voice.
Their income is only about $50,000 combined and that is how much they owe in debt. Basically, anything they were earning was going right to the collectors. Chapter 13 bankruptcy is basically a five year plan to pay off debt while still protecting your assets.
Dave suggests taking a financial course to practice budgeting and really understanding where the debt was coming from. He suggests first paying off any debts that aren’t included in the chapter 13 bankruptcy. Next, Dave recommends that she talk to here Chapter 13 trustee. Trustees are helpful in navigating the complexities of bankruptcy. The two keys to getting out of debt are budgeting and being in a mindset of attack. That bankruptcy has to be eliminated as fast as possible. It is not impossible, it require planning and determination.