In can be difficult to decide in favor of any type of bankruptcy, but it may be the best way to improve your financial standing and start fresh.
Those who find that they do not qualify for Chapter 7 often turn their attention to Chapter 13 bankruptcy.
With this approach, you are required to pay back some or all of your debt through a repayment plan that typically lasts three to five years.
Here are some of the many benefits associated with Chapter 13 bankruptcy:
-- You can stretch out debt payments over a longer period of time, thus allowing you to make things right while keeping your property.
-- As long as you continue to make payments as scheduled by your Chapter 13 bankruptcy plan, you can keep the property you are paying on.
-- You are unable to keep your credit cards. You may see this as a bad thing at first, but it can actually work in your favor as it allows you to avoid the same type of trouble in the future.
-- Declaring Chapter 13 bankruptcy is often the first step in rebuilding your credit. This doesn't mean you'll be able to secure a mortgage or car loan in the near future, but you can take steps toward making things better. A little bit at a time your credit will improve.
-- Put an end to aggressive collection tactics. One of the top benefits of bankruptcy is the ability to implement a plan for putting your troubles in the past. This means that all aggressive collection tactics will come to an end, which should give you peace of mind.
These may not be the only benefits of Chapter 13 bankruptcy, but they are definitely among the most important. With these in mind, you may soon realize that this is the best way to escape your financial troubles and put yourself on the right track to a better future.
Before you file for Chapter 13 bankruptcy, it's a good idea to compare the pros and cons. You may also want to learn more about Chapter 7. When you have the right knowledge, it's much easier to proceed in the appropriate manner.