Chapter 13 Bankruptcy Attorney: 5 Benefits of Chapter 13!

You'll learn about 5 benefits of Chapter 13 in this article. Find an expert Chapter 13 bankruptcy attorney if you want to save money, keep your assets, and discharge most of your debts.

Chapter 13 bankruptcy is designed to help individuals and small scale business owners pay off their debts within a period of 3 to 5 years. This type of bankruptcy will help you retain your non-exempt properties and pay your creditors back under a repayment plan. It will help you consolidate your debts into one affordable payment. A Chapter 13 bankruptcy attorney can help you get rid of credit cards debts, medical bills, auto loan debts, payday loan debts, and other unsecured debts. Read on if you want to find out how a Chapter 13 bankruptcy can help you!

Save Money

In most Chapter 13 cases, individuals are only required to pay back a small percentage of their unsecured debts without further penalties and interest. In many cases, the percentage is as low as 1 percent. For instance, under Chapter 13, if an individual owed $100,000.00 on credit cards, he would only be required to pay $1,000 to his creditors over a period of 3 to 5 years. After his last payment to his creditors, the remaining balances would be discharged. It is also worth noting that one of the biggest challenges facing some individuals who want to file for bankruptcy is coming up with the cash to get their case filed. It will cost you less upfront money to file for Chapter 13.

Keep Your House

Under Chapter 13, you'll be able to keep your house, even if you're behind on your mortgage payments or in foreclosure. Regardless of how far behind you are on your monthly mortgage payments, you will still be able to keep your home. A foreclosure can be stopped prior to the sale of the property by the sheriff. However, if your property has already been sold by the Sheriff, it can't be recovered by filing for bankruptcy. It is vital that you consult with a Chapter 13 bankruptcy attorney after you are served with foreclosure papers.

Keep Your Vehicle

By filing for a Chapter 13 bankruptcy, you'll be able to keep your vehicle even if you are behind on your car loan payments. This is true if your vehicle has been repossessed, but it hasn't been sold at an auction. If you file for bankruptcy in time, your creditor must return your car to you.

Reduce the Interest Rate on Your Auto Loan

Under Chapter 13, you may be able to reduce the interest rate on your auto loan. Under this type of bankruptcy, people are only required to pay a reasonable interest rate on their auto loans. If the current interest rate on your auto loan is higher than 9 percent and you file for bankruptcy, you may save a considerable amount of money in interest charges.

Certain Debts Can Only be Discharged Under Chapter 13

Certain debts can only be discharged under Chapter 13. For instance, if you owe money due to a property settlement or divorce, you cannot discharge these debts under Chapter 7, but you can under Chapter 13. There are many types of debts that can only be discharged under Chapter 13. You can find out if your debts are dischargeable by consulting with a qualified Chapter 13 bankruptcy attorney. Your Chapter 13 bankruptcy attorney will advise you of your options.

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