A few years ago, when I realized that I couldn't pay my mortgage anymore, I knew that I needed to do something to correct my finances. It seemed like I just couldn't catch a break, and after losing my job, I knew that I was in trouble. I started looking for new work, but I knew that I needed to fix my credit somehow. I was at the end of my rope, until a friend talked with me about the possibility of declaring bankruptcy. She explained that it helped her to start over. I met with a bankruptcy attorney who was incredible to work with, and I was amazed at how much it helped my situation. Check out this blog to learn how working with a bankruptcy professional could help you.
One of the hardest parts about filing for bankruptcy is trying to decide what type of bankruptcy is the best fit for your financial situation. Listed below are two reasons to consider a Chapter 13 bankruptcy filing in order to help you make your decision a bit easier.
Get To Keep Your Property
One of the biggest differences between a Chapter 7 and Chapter 13 bankruptcy is the fact that you do not have to give up as much property when you file for a Chapter 13 bankruptcy. The reason for this is that when you file for a Chapter 13 bankruptcy, you are not having all of your debts discharged. Instead, you will be entering into a payment plan that will allow you to repay your creditors.
In addition, you will not have to worry about someone showing up to your home and attempting to seize property or repossess a vehicle because you are actively repaying them through the Chapter 13 bankruptcy filing. Also, if you complete the repayment plan laid out by the bankruptcy court but the creditor did not receive the full amount they were owed before you filed for bankruptcy, the creditors are not able to seize your property or demand more money after the repayment period has ended.
In order to make repayment easier, your bankruptcy attorney will likely recommend that you surrender some of the property that you are currently trying to make payments on, such as a second car. In addition, the bankruptcy judge will make repayment even easier by forgiving a portion of the overall debt and extending the repayment period to five years or less so that you can take advantage of a more reasonable monthly payment and so that your creditors can at least get a bit of the money that they are owed.
Can Refile Sooner If Necessary
Another reason to consider a Chapter 13 bankruptcy filing is that you can refile much sooner than with a Chapter 7 if you run into more financial difficulties in the future. With a Chapter 7 filing, you will have to wait years before you can file again, while you can refile for a Chapter 13 bankruptcy whenever you need to as long as you finished the repayment plan for the previous Chapter 13 filing. While you do not want to get into the habit of filing for bankruptcy repeatedly, it is nice that the option is there in case of unforeseen financial difficulties, such as losing your job.
Contact a bankruptcy attorney today to discuss whether a Chapter 13 is right for you and how it can assist you with your debts. The fact that you do not have to give up a lot of property and can refile quickly if necessary are both good reasons to consider a Chapter 13 bankruptcy filing.Share