There are a large group of Americans who are struggling with debt through little fault of their own. Perhaps they lost their job in the recession, perhaps a divorce has crippled their finances or maybe a surprise medical bill has put them in crisis mode. If you’re one of many struggling with debts and bills week to week and barely making a dent, you should think about filing for bankruptcy.

However, if you’ve been keeping up with your bills and making timely payments on your debts, you may not want to take the bankruptcy hit to your credit score. At the same time, it makes little sense to continually make payments without making notable progress, especially if you’re unable to stash away weekly or monthly savings. The question you should ask yourself in this situation is if you can realistically pay off all your debts in five years.

Five years is a key milestone is because that’s the maximum length of time you would have to pay down your debts in a Chapter 13 bankruptcy settlement. It would also allow you to keep all of your property while maintaining your general lifestyle. In addition, the repayment plan you work out with your bankruptcy trustee will likely allow you to start saving again. You don’t want to just dig out of debt and have nothing to support you in case of emergencies.

You will have to qualify for Chapter 13 bankruptcy, which will depend on your financial circumstances. To understand your best financial options, it’s best to speak to a bankruptcy attorney in your area. A knowledgeable lawyer will be able to advise you on the best course of action.

Contact the Law Office of Joel R. Spivack today to discuss your finances and bankruptcy options. He has been helping New Jersey and Pennsylvania residents get back on track financially for over 30 years.