3 Reasons To Use A Chapter 13 Calculator When Considering Relief

Written by Ben T | July 29, 2019

Using a calculator to compare your options.

Introduction:

Confidence concerning your finances can be hard to come by. However, it can often be the key. I like what Jessica stated in her Articles Hubspot Article, that “The rule of thumb says that you should have at least three-month worth cost of living in your emergency cushion, but it is harder than you think.” When in debt, you are most likely presented with many options for debt relief. Whether that be debt settlement, debt consolidation, or bankruptcy. Choosing and trusting that a certain path is right for you can be difficult.

Maybe you have gotten over the first hurdle already by deciding that bankruptcy is the best option. Now you have to ask yourself whether a Chapter 7 or Chapter 13 bankruptcy will be best for you. This is where using such things like a Chapter 7 Means Test Calculator or Chapter 13 Calculator to determine which option is best for you can be extremely beneficial. 

What does the Chapter 13 Calculator do? 

A Chapter 13 Calculator collects information concerning the debt ranging from those concerning real estate, automobiles, and other miscellaneous debts. Its overall goal is to have a substantial understanding of your debt and use this to determine whether going through with Chapter 13 bankruptcy is right for you. 

You may be unconvinced as to the benefits of using a Chapter 13 calculator. Let’s go through three reasons for doing just trying a calculator.

1) It will help you estimate your Chapter 13 Plan Payments if you choose to pursue bankruptcy.

When you do decide to go through with Chapter 13, there is a typical process. Your bankruptcy attorney will establish a payment plan to pay back your debts. This process is usually between 3-5 years. This plan is made to match your financial situation accordingly with Chapter 13 bankruptcy factors. 

These payment plans, however, can be completely unknown to you until you decide to go through with Chapter 13. To avoid being potentially surprised by such a plan, you can use the calculator’s estimate to further gauge whether such an option is right for you. Having a rough estimate of your Chapter 13 Plan Payments can give you the right nudge in deciding whether it is the best plan or not.

2) It will allow you to compare your debt relief options.

In certain cases, comparison is key. It can be helpful to compare your debt relief options right next to each other. Thus receiving the full picture and deciding which is right for you. 

When you use a Chapter 13 Calculator and it returns an estimate payment plan, you can see what you will have to do concerning your debt with this option. 

Say you are also considering debt settlement as a viable option for getting out of debt. In this specific example, you would like to do so as quickly as possible. Knowing how long a Chapter 13 bankruptcy may take for you, may be enough for you to know that debt settlement is the better plan for you.

3) Some Calculators will provide the pros and cons of the different debt relief options along with specific insights

When you are deciding on debt relief, one of the things that is necessary to consider is to compare bankruptcy to other debt relief options. Just as a side note, the calculator should also use official US bankruptcy forms to help determine the estimates for you. Even though you may think you need a bankruptcy, another form of debt relief may be best such as debt settlement, debt management or doing it yourself. 

Some calculators will provide pros and cons with their payment estimates to give you enough information to make the most informed decision along with specific insights about how your data corresponds with your situation. It is important to consider all of the pros and cons to each option before making a decision. For example, Debt Settlement may be a better option if your income is inconsistent as there’s flexibility in the payments while a Debt Management may be a better option if you have creditors that will work with the debt management firms to drastically reduce interest rates. 

Finding a Chapter 13 Calculator is essential when deciding whether debt relief is right for your financial hardship. Hopefully, you will take these three guidelines to help you choose the right one.

July 29, 2019 | 407 Views

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