Some people believe declaring bankruptcy can leave them in worse financial shape. That said, you should know that this is not the case. In reality, filing for bankruptcy can help you deal with your debt issues more effectively. This is especially true when you choose to file for chapter 13 and work with a legal advisor. Below are a few reasons this chapter is your best option when overwhelmed by debt.
You Will Have an Easy Repayment Plan
If you are dealing with financial woes, you already know that debt can reach uncontrollable levels quickly. This is especially the case if creditors charge high penalty fees for defaulting on your payments. If this is your situation, chapter 13 can be your lifeline. This is because once you declare bankruptcy, the court will compile what you owe and your past-due payments in one repayment plan. As a result, you will only make one monthly payment for a specified period.
If you are already struggling to make ends meet, a simplified debt repayment plan might be just what you need. So instead of making different payments to cover your debt, you will make a consolidated payment to the bankruptcy trustee. They will then pay your creditors and offer financial protection as long as you make your payments. Then, after the repayment period, the court will discharge the remainder of the debt.
You Will Keep Your Assets
One of the biggest concerns among bankruptcy applicants is that they will lose their assets after filing. However, this should be the least of your worries when filing chapter 13. You should know that this chapter will preserve your assets even after declaring bankruptcy.
This may even be the case when you are far behind on your mortgage payments and you're about to lose your house to creditors. In this case, your application will stop the foreclosure and repossession. That said, you should know a successful application is no easy task, and it is best to work with a bankruptcy lawyer when filing.
You Will Open Up More Cash Flow
Chances are you are spending all your earnings on debt repayments. As such, you may have difficulty meeting basic needs, which only increases your financial stress. That said, you should know that when you file chapter 13, your lawyer will design a manageable debt payment plan. In this case, you will use a small amount of what you earn on debt repayment. This will enable you to save more cash and make monthly payments without challenges.
Contact a bankruptcy attorney if you believe that chapter 13 is the best bankruptcy for your financial problems. They will guide you through the application process and ensure your approval. This will enable you to enjoy the benefits above and others provided by Chapter13. Reach out to a local chapter 13 lawyer to learn more.Share
20 October 2022
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