If you’re not sure why Chapter 13 Bankruptcy could be the best option for you, then here’s what you need to know.
1. For those that don’t qualify for Chapter 7 bankruptcy
If you don’t qualify for Chapter 7 Bankruptcy because you make too much money, then you will be able to file for Chapter 13 Bankruptcy, meaning that you can eliminate your debts
2. Covers some debts that Chapter 7 Bankruptcy doesn’t
Recent taxes that aren’t dischargeable in bankruptcy usually get paid off through the Chapter 13, and Chapter 13 also discharges certain marital property settlement debts.
3. Repayment plan
As it’s a repayment plan, you will still be paying back your debts as a monthly payment plan, rather than eliminating them.
The amount you have to pay every month is determined by how much you make and by your expenses. It is not determined by how much you owe, so you can potentially save quite a lot of money.
At the end of the plan, any unpaid debts will be discharged, which is why Chapter 13 bankruptcy is often the best option.
4. Keep more property in Chapter 13 than in Chapter 7
You can protect more property in Chapter 13 bankruptcy than in Chapter 7. This is only fair right? After all, the creditors are getting partially paid back, so you should be able to keep more property.
You will also be protected against foreclosure on your home as long as you meet the terms of your repayment plan.
6. Debtors calls the shots
Under a Chapter 13 Bankruptcy you impose your debt management plan on your Creditors, not the other way round.
This gives you the control and financial stability you need, and can help you to rebuild your life.
6. Creditors must accept the plan
Your Creditors must accept and agree to your Chapter 13 Bankruptcy repayment plan.
So long as your plan complies with certain legal requirements, the creditors can’t make amendments or hassle you with additional demands or ask you to increase your repayments. This is another reason why Chapter 13 bankruptcy work for so many people.
Your lawyer will make sure that you plan complies with all legal requirements and is confirmable.
Walker & Walker Law Offices, PLLC is one of the biggest filers of Chapter 13s in Minnesota, and we have helped over 40,000 people become debt free, so we know exactly how to make your case successful.
7. The Court is on your side
The Court will enforce your repayment plan if your Creditors disagree, hassle you or won’t cooperate with you.
You don’t need to worry about phone calls or threatening letters any more.
8. Gives you time to pay off debts
A Chapter 13 Bankruptcy case will usually give you 3- 5 years to pay back your debts, so you should be able to manage financially without facing further hardships.
Also, you will usually pay much less than the full amount of your debt. This means that you will be debt free in a few years and why why Chapter 13 bankruptcy can be appealing to those struggling financially.
9. Stay in your home
Under this repayment plan, you will be able to pay off your outstanding mortgage arrears and stay in your home, if you wish.
If you can’t sell your home because it worth less than you paid for it, then this might be the best way to keep your home.
10.Can reduce or eliminate certain liens
Chapter 13 Bankruptcy can reduce or eliminate liens. Liens are a right to keep possession of something until it is paid for. Car loans and mortgages are common examples of liens.
Car negative equity, (where you owe more than your car is worth due to depreciation) can be minimised, and this also applies if your home is under water, (where the value of your mortgage is worth more than your home) can be reduced too.
Now that you know more about Chapter 13 Bankruptcy, and whether it is more appropriate for you than Chapter 7 Bankruptcy, why not speak to an experienced Minnesota Bankruptcy Attorney and get the help you need now?
Call 612.824.Help to get your Free Evaluation today.