You may be contemplating filing for Chapter 13 bankruptcy if you have overwhelming debt. If you officially file for this, there are several benefits that you may experience.
The fact is, Chapter 13 bankruptcy is unique. It offers you an opportunity to get on a secure financial footing without some of the issues seen in Chapter 7 bankruptcy.
Flexibility in repayment
Chapter 13 is often called a “reorganization” bankruptcy because it allows you to take control of your debts and repay them on a reasonable, affordable schedule.
No need to pay the debt in full
As mentioned, Chapter 13 bankruptcy restructures your debt and creates a repayment plan for you. After you complete the repayment plan, your remaining debts can be discharged and creditors are no longer allowed to make you pay them in full.
Protecting your assets
As long as you make the payments established on time, you have the right to keep the assets or property you are paying on. This can be particularly useful if you have assets you might otherwise lose in a Chapter 7 bankruptcy.
You have to qualify for Chapter 7 by meeting certain income requirements. Chapter 13 doesn’t have the same limitations, so that makes it ideal for people who still need bankruptcy relief but have significant ongoing income.
Receiving the debt relief you need
If you are in debt, finding a viable debt relief option is likely an important goal. It’s smart to consider Chapter 13 bankruptcy in this situation; however, it’s a good idea to explore all your options and make the right decision based on your needs.