Even though the economy in the rest of the nation seems to be rebounding, the recovery is slower for many residents of Cuyahoga Falls, Ohio. Some filed for Chapter 7 bankruptcy at the peak of the Great Recession and found a fresh financial start; others may not have been so fortunate. They may have been surprised new financial challenges such as unexpected medical expenses, loss of employment or, in some cases, may have fallen back into their old spending habits. Those who have already filed for Chapter 7 bankruptcy may be able to find debt relief by filing Chapter 13.

Chapter 13 is essentially consumer debt reorganization. It can be used to stop wage garnishments, lawsuits and creditor harassment. Over a period ranging from three to five years, you will be expected to make monthly payments on your debt, but the payments are typically much less than what you owe the creditor. In other words: your debt becomes more manageable. Restructuring your debt through Chapter 13 is often a viable option for filed for Chapter 7 less than 8 years ago as they are not allowed to file for Chapter 7 again so soon. It is important to note, however, that Chapter 13 will not stop foreclosure. If you are faced with the prospect of losing your home, you will need to speak with a bankruptcy attorney regarding the mortgage modification process.

The decision to file for personal bankruptcy is not an easy decision to make. It often helps to discuss your unique financial situation with a bankruptcy attorney. This will allow you to weigh all of your options and find the best way to get back on your feet.

Source: Fox Business, “Too Soon to File for Bankruptcy Again?,” Justin Harelik, August 14, 2013.