In case you land up in a financial crisis and are willing to file for bankruptcy, you may be wondering whether to file for Chapter 7 or Chapter 13. Well, Chapter 13 comes with certain benefits that you must know. Reach out to the professional bankruptcy attorneys for expert help. Chapter 13 enables the debtor to get more time to pay off the debts. When you file for bankruptcy, you will remain free from the headaches and harassment of the creditors. The attorneys will handle the calls on your behalf.
Chapter 13 of bankruptcy is a repayment plan, approved by the court, that enables the debtors to pay back the amount. The time period for repaying the debt varies between three to five years and depends on the amount of the debt. It also depends on the income level of the individual. The debtor needs to make a manageable payment each month to the bankruptcy trustee, and need not deal with the creditors. Individuals qualifying for Chapter 13 can get an extended period of time to pay back the loans.
The advantages of Chapter 13 of bankruptcy include:
- In case an individual has fallen behind on the mortgage payments on monthly basis, they can avoid foreclosure.
- Filing for Chapter 13 of bankruptcy can help an individual in protecting non-exempt property, which might not be eligible for protection under Chapter 7 of bankruptcy.
- The individuals can prevent repossession of their vehicle on filing for Chapter 13 of bankruptcy, and catch up with the loan repayments.
- It is possible for you to ‘cram down’ car payments, that are based on the present value of your vehicle and the original principal loan amount.
- People filing for Chapter 7 of bankruptcy in the last eight years can still get protection through Chapter 13.
Get across to the huntsville bankruptcy attorney for expert support.