With so many benefits of a Chapter 13 bankruptcy filing, you should feel comfortable learning more if your finances are in a state of disarray.
While it's best to avoid financial trouble in the first place, it's good to know that you can straighten things out by filing for bankruptcy. Here are some of the top benefits:
- Save your home from foreclosure: When you file for Chapter 13 bankruptcy, the foreclosure process will temporarily come to a halt (thanks to the automatic stay). From there, you can work through your issues and look for a way to make things better in the future. For example, you may be able to make up missed payments, thus remaining in your home.
- A Chapter 13 bankruptcy stays on your credit report for seven years: This doesn't sound like a benefit, until you realize that a Chapter 7 filing remains on your credit report for 10 years.
- The opportunity to reschedule secured debt: When you extend these debts over the course of your Chapter 13 repayment plan, you may end up with a lower monthly payment.
These are not the only benefits of a Chapter 13 bankruptcy filing, but they are a few of the best. All of these will have you thinking long and hard about moving forward, knowing that it could be just what you need to improve your situation.
If you're ready to push ahead with Chapter 13 bankruptcy, see what your benefits would be and learn more about the process as a whole, your legal rights and what is expected of you, then an experienced attorney is the person to turn to.
Source: FindLaw, "Benefits of Chapter 13," accessed May 29, 2018