With Chapter 13 bankruptcy, you can use your regular monthly income to repay some or all of your debt. Doing this over the course of three to five years goes a long way in helping you keep your assets.
Here are some reasons to choose Chapter 13 bankruptcy:
- Avoid foreclosure: If you’ve received a foreclosure notice, a Chapter 13 bankruptcy can stop the proceedings for the time being. It may even provide the opportunity to catch up on back payments through your repayment plan.
- Less impact on your credit report: A Chapter 13 bankruptcy will remain on your credit report for seven years. While this sounds like a long time, it’s three years less than a Chapter 7 bankruptcy.
- Lower monthly payments: Through Chapter 13 bankruptcy, you can reschedule some of your secured debts. By extending them over the life of your repayment plan, you may end up with a lower monthly payment. This makes it much easier to meet your obligations.
It’s important to compare the pros and cons of Chapter 13 and Chapter 7 bankruptcy, as doing so will help you make a confident decision that you can live with.
If you’re ready to proceed with a Chapter 13 bankruptcy filing, take the time to learn more about the benefits and the impact they’ll have on your life.
If it’s the right choice for you, it’s time to begin the process. When doing so with a clear mind, you’re in position to take full advantage while protecting your legal rights every step of the way.