With the average cost of living continuing to increase and the job market still in poor condition, more and more people are finding themselves in vulnerable financial states. Fortunately, when these situations accelerate to a point where it is improbable that a debtor will be able to pay their bills, filing for bankruptcy can allow them to repay their debt under more attainable guidelines. The different types of bankruptcy determine what it means to file bankruptcy in each individual case.

Overall, there were an estimated 1,071,932 bankruptcy filings in the United States just in 2013. These can be a result of a number of different situations. Some people may have substantial student loans to pay back while others have outstanding medical debt. Unpaid medical bills alone resulted in around 2 million people in the United States filing for bankruptcy in 2013.

Of all of these cases in 2013, 333,626 of them were chapter 13 bankruptcy filings. This type, also referred to as the wage earner’s plan, involves an individual setting up an arrangement to pay back their debts, or a portion of their debt, using their regular income. These repayment plans allow the debtor to make installments to creditors over a span of three to five years.

Considering how much money may be on the line in these cases, as well as the individual’s well being, it is often a good idea to acquire chapter 13 bankruptcy help to determine what repayment plan is best suited to the individual’s situation according to their income and the sum of their debt. A chapter 13 bankruptcy attorney will also be able to negotiate with creditors in order to make the installments more reasonable.

It is not uncommon to end up back in poor financial standing with a faulty repayment plan that may drain income faster than the individual generates it. Finding chapter 13 bankruptcy help is a useful tool in ensuring that any broken up payments will not exceed the debtor’s means. The last thing someone wants after filing for bankruptcy is to end up falling into even further debt.

Because most bankruptcy filings are used as a last ditch effort, there is no shame in using chapter 13 bankruptcy help to ensure future financial stability. It’s far better than actually losing money by filing for bankruptcy.