You have been considering bankruptcy, but you really do not like the idea of liquidating your assets with Chapter 7. You want to keep them. Is that possible if you opt to use Chapter 13 instead?
It is. This is one of the big advantages of Chapter 13 bankruptcy. While you can give up some assets to reduce your debt load, you are not obligated to liquidate what you own like you would be with Chapter 7.
Instead of selling assets and making payments up front, you get a repayment plan. You then have years to make these payments. The goal is simply to make the debt you have affordable again. If you are in over your head and cannot pay it all back on time, Chapter 13 can give you three to five years to meet that obligation. This stretches the payments out and allows you to address your debt without losing anything.
Remember, missing payments every month really hammers your credit score. The same is true if you have items repossessed or if you default on loans. You could even end up facing lawsuits from your creditors. All of this makes it harder for you to get loans in the future.
Chapter 13 will also have a negative impact on your credit score, but that could be inevitable at this point. At least, with Chapter 13, you get to keep your assets and make your payments over time.
As you can see, it is important to know all of your financial options. Be sure you understand the different types of bankruptcy you can choose from.