The decision to file for Chapter 13 bankruptcy isn’t one to take lightly. It will impact your life in many ways, both now and in the future, so it’s critical that you’re 100% on board with everything the process will bring.
Here are some of the top reasons to file for Chapter 13 bankruptcy:
- Avoid foreclosure: For many people, this is the top benefit of Chapter 13 bankruptcy, as they’ve fallen behind on their mortgage payments. Upon filing, an automatic stay will go into place that stops the foreclosure process in its tracks. From there, you can repay your delinquent mortgage payments through your payment plan. If successful, you get to keep your home.
- It only stays on your credit report for seven years: Yes, this is a long time, but it’s three years fewer than a Chapter 7 bankruptcy filing. The sooner your bankruptcy disappears from your credit report, the sooner you can get back to life as normal.
- Keep your property: You’re legally permitted to keep any property that you’re making payments on through your repayment plan.
- It can help with almost every form of debt: Regardless of what type of debt you’re facing, Chapter 13 bankruptcy is likely to help. Typically, the only exceptions are student loans and child support obligations.
Along with the above, many people opt for Chapter 13 bankruptcy because it gives them the opportunity to make things right.
Through your repayment plan, you’ll catch up on many of your debts. Not only does this allow you to keep the property, but it also ensures that the creditor doesn’t lose out as a result of your financial setback.
If you’re interested in filing for Chapter 13 bankruptcy, it’s critical to compare the pros and cons to ensure that it’s right for your situation.
Should you decide to proceed, take the time necessary to learn more about the process, your legal rights and how to best deal with the effect on your life.
If you’ve tried everything to rid yourself of debt but have yet to make any real progress, Chapter 13 bankruptcy could be the best option.