There is no word in the world of financial information that carries with it a more negative connotation than “bankruptcy.” Most people consider it the end of a disastrous road that has ended in financial ruin.

However, there is no shame in having file bankruptcy. No matter how much time and care you put into being financially responsible, unforeseen circumstances, such as medical emergencies, divorce, and income changes, can leave you with no other option but to file for bankruptcy protection.

Many people consider filing for bankruptcy as making some sort of admission that they are no longer making money. However, Chapter 13 bankruptcy is also referred to as “Wage Earner’s Bankruptcy.

Those wages that you’re still earning can be used to pay your mortgage, allowing you to keep your home which is your most important asset. Unsecured debt, such as credit card debt is reduced or eliminated which frees up the funds that you do have to pay off more pressing debts.

Clients who file for Chapter 13 bankruptcy protection are assigned a court-appointed trustee or mediator who serves as the liaison between them and the creditors that they owe. This trustee handles paying the lenders that you owe money to, ensuring that they get paid and you no longer have to deal with creditors.

Working with a lawyer who is familiar with bankruptcy options and proceedings can allow you to bounce back after a financial catastrophe. No one wants to experience financial hardships, but they are often an unavoidable part of life.

Wage Earner’s, or Chapter 13 bankruptcy, is for those whose biggest problem is creditors demanding immediate payment, not those who are experiencing a lack of income. Busting the myths associated with chapter 13 bankruptcy is the first step in allowing clients to experience financial freedom after an unexpected hardship has occurred.