Educating You in the Ways of Debt Elimination
Knowledge is power. We believe that every client should feel powerful in the face of heavy debt. When you work with Watton Law Group, we will take the time to educate you about your options. As you learn more about how debt can be controlled, minimized, and discharged, you will feel more confident in your financial future.
What is Cash Flow?
Cash flow is basically another name for your budget. Money comes in and money goes out every month. Many people find themselves living on the wrong side of the equation, with more money flowing out than coming in. They live paycheck to paycheck, “robbing Peter to pay Paul,” and effectively running on a treadmill. Even if you are maintaining your bills right now, no one can tread water with their monthly expenses forever. Eventually, you are going to drown.
There are only two solutions to cash flow problems:
- You can increase income,
- Or you can decrease expenses.
In practice, many individuals find it difficult, or impossible, to achieve either on their own in a sustainable way. That’s where Chapter 13 can be helpful. Chapter 13, by definition, is a balancing of your cash flow by reducing your expenses.
Chapter 13 Bankruptcy: A Structured Solution to Improve Your Cash Flow
If you want to improve your household’s cash flow by minimizing your debts, we can start by considering whether Chapter 13 bankruptcy will help. In Chapter 13, you can explore options to minimize your debts, reduce interest rates, catch up on important items, repay what you reasonably can, and discharge the rest. This form of bankruptcy is usually the most beneficial if you have income, just not enough to allow you to get ahead on your debt or feel financially stable.
Using Chapter 13, we can:
- Lower your payments on secured debts like vehicle payments.
- Eliminate or greatly lower unsecured debt payments with no interest.
- Create a three-to-five-year repayment plan for your debts.
We will develop a plan for you to dig yourself out of debt that is not only possible but also allows you to do so without constant creditor harassment. The goal is to make more dollars available to you and your family each month. This process is about cash flow and financial independence, as well as discharging your debt.
