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Bankruptcy can help residents of Massachusetts with debt relief

High levels of debt can be overwhelming for anyone. It can add significant amounts of stress to the workplace, home life and making every day financial decisions agonizing. Suze Orman, a well-known financial guru, says that one way to alleviate the pressure is to file for Chapter 13 bankruptcy. Massachusetts' residents who are struggling with high levels of debt and want to stop creditor harassment may consider the benefits of filing for Chapter 13 bankruptcy.

Orman points out that many people find themselves in a quandary over how to pay some of their high levels of debt. In 2012, the filed number of bankruptcies climbed to 1.3 million compared to 1.1 million in 2008. The financial advisor says that Chapter 13 bankruptcy can be an option because some creditors can sue to win legal authority to attach liens to a Massachusetts' house or garnish wages. Filing Chapter 13 will often show creditors that you can't afford to pay for your debts, and will allow for a negotiation on a more manageable method of payment.

Chapter 13 bankruptcy allows individuals to consolidate their debts, keep their property and establish a payment plan that typically runs over the next three to five years. It is a reorganization bankruptcy that puts all debts into easy controllable payments. It's important to realize there are certain limits on who can file for Chapter 13, but many people who do file are offered a structured way to pay off debt.

Orman questions debtors' worries about bankruptcy by suggesting that bankruptcy is actually a proactive step towards addressing the problem, as opposed to doing nothing and allowing mortgage debt, credit card debt and car loans to simply pile up. Chapter 13 bankruptcy may offer debt relief, a path to financial freedom and the ability to move on past a mountain of debt. It's the first step in a convenient process to becoming debt free.

Source: CNBC, "The good thing about bankruptcy," Sakina Spruell, Oct. 21, 2013

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