The idea of there being benefits to any form of bankruptcy may seem ludicrous, but there are several benefits to be had by filing Chapter 13 bankruptcy, if the applicant meets the bankruptcy trustee’s requirements. If you’re considering filing for Chapter 13 bankruptcy and also seeking additional information about the potential benefits, then be sure to read on to learn more.
Avoiding Foreclosure On Your Home
When your home is foreclosed on by your creditor, you will lose every last cent that you have put into your monthly payments, as well as any improvements and upkeep that have been made. Filing for Chapter 13 bankruptcy puts a stop to your foreclosure proceedings immediately and gives you a chance to set up a payment plan in a court of law.
This form of bankruptcy also provides a valuable opportunity to get back up to date with any delinquent back payments that have been missed. Car loans are also included during a Chapter 13 bankruptcy, so that people who are still earning a solid living wage can retain possession of their vehicles and make their way to and from their place of employment each day.
Chapter 13 Bankruptcies Are Quickly Removed From A Credit Report
Chapter 7 bankruptcies may seem simpler than Chapter 13 filings, but Chapter 13 comes with the advantage of being removed from your credit report far more rapidly. Chapter 7 bankruptcies remain on the debtor’s credit report for a full ten years after the initial filing, whereas a a Chapter 13 bankruptcy is eligible for removal within seven years.
A creditor will have three less years of knowledge at their disposal when you file for a Chapter 13 bankruptcy, which greatly increases your chances of being able to receive loans sooner. Credit reports are also used for a number of other expenses, such as credit cards and vehicle finance loans, so if you’re looking to expedite the process of financial rehabilitation, Chapter 13 is the way to go.
Sometimes, we fall behind on certain debts because we do not have enough time to pay them back or the monthly payments have simply become too onerous. Chapter 13 enables the restructuring of debts and allows them to extend their monthly payments over the existence of their Chapter 13 repayment plan.
By doing so, monthly payments are typically made lower, which serves to ease the financial burden for the debtor. As an added bonus, Chapter 13 bankruptcies also reduce the debtor’s contact with their creditors. Instead of paying their creditors directly each month, the money is disbursed to a bankruptcy trustee, who is then responsible for handling the payments. Chapter 13 provides a higher level of protection and ensures that the debtor experiences no further harassment. If you want to be well informed at the time please consult dallas chapter 7 bankruptcy lawyer.