Top Benefits Of Chapter 13 Bankruptcy
Posted on: 17 December 2020
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Have you thought about getting help for your debt problems? If not, you might want to look for a program that can help you get out of debt. If you wait too long to seek help, you might face too many challenges. As you search for your options, you might come across Chapter 13 bankruptcy. Chapter 13 offers some benefits when used properly, and here are some of them.
It Helps You with All Debts
Some debt programs only provide help for certain debts, but Chapter 13 can help with every debt you owe. Chapter 13 does not have limits when it comes to the debts you can include in your plan. If you owe money to anyone, you can include the debt in your plan. The plan may last for up to five years, and you must make payments. When you complete the program, you will have an improved financial position.
It Provides a Way to Stop Foreclosure
One unique aspect of Chapter 13 is that it helps you stop a foreclosure. If you face losing your home to foreclosure and want a way out, Chapter 13 can help. Chapter 13 involves combining all your debt payments into one. It is a consolidation plan, and you can include your past-due mortgage loan balance. In exchange for agreeing to make payments, you get to keep your home. Your lender cannot legally pursue foreclosure while you are in a Chapter 13 bankruptcy case.
It Stops Repossession
The same principle is true for car loans. If you miss a payment on your car loan, you risk losing the car to repossession. Chapter 13 also stops this from occurring. You will not lose any assets that you have loans on if you use this branch.
It Helps You Overcome Debt Problems
Finally, Chapter 13 helps you overcome debt problems through a consolidation plan. Over the next three to five years, you must make payments to the court for your case. The court manages these payments by using them to pay your debts. You can overcome massive debt issues through this branch. As a result, you should be in good financial shape by the time you finish your plan.
These are four benefits you can reap by using Chapter 13 bankruptcy. If you would like more information, talk to a bankruptcy attorney. By discussing your situation with a lawyer, you might discover that Chapter 13 is right for you.