Benefits of Filing for Chapter 13 Bankruptcy
Financial times occur sometimes, regardless of how much money a person may make. This may also be the case no matter how careful you may be with paying bills, savings, and controlled spending. And when these times occur, most people tend to think about making payment arrangements, getting a personal loan, etc.
Bankruptcy is usually the last resort that people consider. And even then, many people will still check to see whether there is another option to consider to keep from bankruptcy. Nevertheless, there are different benefits of Chapter 13 bankruptcy, and these benefits include the following:
- Stretching out Debt Payments
When it comes to working with a reputable DC bankruptcy attorney, he/she will take you step-by-step on making the best debt relief option possible through bankruptcy. And thus, you will have relief by eliminating the stress that comes from wondering how you will make certain payments.
- Reducing Your Payment Amounts
Reputable DC bankruptcy attorneys will also help you work out a workable payment plan. And with that, you will have a lot of stress off of you. Please note, however, that debts from child support or alimony are not included. Nevertheless, you may be able to significantly reduce other payment amounts, so that such debts won’t be a huge problem.
- Giving up a Property Item that you Have Been Paying for
- Possibly Keeping Your Credit From Being Worse
- The Possibility of Rebuilding Your Credit Quicker
Note that once you successfully complete a repayment plan under Chapter 13, individual creditors can’t obligate you to pay them in full.
Further, although a Chapter 13 bankruptcy will stay on your record for years, it is a small trade-off for missed debt payments, defaults, repossessions, and lawsuits that could hurt your credit even more and be harder to explain to a future lender than bankruptcy.
In many cases, declaring bankruptcy can get you started sooner on rebuilding your credit. While you can only file under Chapter 7 once every 6 years, you can always get a Chapter 13 plan if you encounter another financial disaster before you’re entitled to file for Chapter 7. In other words, you may file for a Chapter 13 plan repeatedly (although each filing will appear on your credit record).
Note that once you successfully complete a repayment plan under Chapter 13, individual creditors can’t obligate you to pay them in full.
Further, although a Chapter 13 bankruptcy will stay on your record for years, it is a small trade-off for missed debt payments, defaults, repossessions, and lawsuits that could hurt your credit even more and be harder to explain to a future lender than bankruptcy.
In many cases, declaring bankruptcy can get you started sooner on rebuilding your credit. While you can only file under Chapter 7 once every 6 years, you can always get a Chapter 13 plan if you encounter another financial disaster before you’re entitled to file for Chapter 7. In other words, you may file for a Chapter 13 plan repeatedly (although each filing will appear on your credit record).
As addressed earlier, Chapter 13 bankruptcy will not relieve an individual of their alimony or child support obligations. However, bankruptcy can at least alleviate many of a person’s other financial obligations that are hindering their financial recovery. Nothing will get rid of student loan debt, but at least bankruptcy will prevent lenders from aggressive collection action.
How Your Attorney can Help Determine What Bankruptcy is for you?
For more information about bankruptcy and which ones are best for your situation, contact the Law Office of Kim Parker today. This Maryland Bankruptcy lawyer has been providing top-notch legal services in Maryland for several years.
As addressed earlier, Chapter 13 bankruptcy will not relieve an individual of their alimony or child support obligations. However, bankruptcy can at least alleviate many of a person’s other financial obligations that are hindering their financial recovery. Nothing will get rid of student loan debt, but at least bankruptcy will prevent lenders from aggressive collection action. As addressed earlier, Chapter 13 bankruptcy will not relieve an individual of their alimony or child support obligations. However, bankruptcy can at least alleviate many of a person’s other financial obligations that are hindering their financial recovery. Nothing will get rid of student loan debt, but at least bankruptcy will prevent lenders from aggressive collection action.