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Posts made in April, 2013

Benefits of Chapter 13 Bankruptcy

Posted by on Apr 13, 2013 in Chapter 13 Bankruptcy | 0 comments

After taking time to consider your financial situation, you might come to the conclusion that filing for bankruptcy may be the only option to save you from the financial burdens you are currently suffering. While Chapter 7 bankruptcy is an extremely common form of bankruptcy, many people do not qualify to file for this particular type of bankruptcy. As such, they have to seek alternative options, such as Chapter 13 bankruptcy, which has many advantages.

Chapter 13 bankruptcy offers many benefits to those who choose to file for it. In order to determine if it is the best option for you, consider the following:

  • Do you want to hold on to your nonexempt properties? – Nonexempt properties are those that can be sold by the court and may be used to pay debts during the Chapter 7 bankruptcy process. Typically, however, they will not be sold during Chapter 13 bankruptcy.
  • Do you have some debts that are not dischargeable through Chapter 7? – Filing for Chapter 13 can help you pay for certain tax obligations or students loans that are otherwise non-dischargeable by other types of bankruptcy.
  • Are you in danger of foreclosure or repossession? – Through Chapter 13, you can catch up with your payments to prevent this from happening.
  • Does your personal loan have a co-debtor? – Chapter 13 protects the co-debtor and will not let the creditors go after them. Just make sure you pay the creditors regularly as according to your payment plan.
  • Are you unable to pay for other higher mortgages? – If you are only able to pay for your first mortgages, Chapter 13 may offer you lien stripping. This can enable you to only pay for the first mortgages, removing other mortgages.

Depending on your situation, the benefits that Chapter 13 bankruptcy offers may or may not be right for you. However, for many, this is a very advantageous bankruptcy option, allowing debtors to pay off large amounts of debt over a longer period of time.

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