Filing for Chapter 13 bankruptcy can be a challenging time for individuals, but the process may be able to provide much-needed relief and help with debt relief – potentially preventing the need for foreclosure. Knowing the advantages of Chapter 13 can help individuals to decide whether the process is the right choice for their financial situation.
Keep reading to learn about those benefits and then contact Law Offices of Terrence Fantauzzi at (909) 552-1238 for a free legal consultation with a Chapter 13 bankruptcy attorney.
The many benefits of Chapter 13 bankruptcy
There are many benefits to filing for Chapter 13 bankruptcy, including reduced debts, a more structured repayment plan, and the protection of assets. It can also stop creditors from harassing and threatening you, and will stay on your credit report for ten years, giving you time to improve your credit score. In some cases, you may even have a portion of your debts forgiven, which could result in a considerable advantage for your finances.
Bankruptcy can also delay foreclosure, help you save a home, a car, and other possessions, and can help protect co-signors from being held liable for your debts.
Understanding The Filing Process
Navigating the filing process can be incredibly confusing; understanding how to file bankruptcy and choosing the right filing status can often lead to confusion. Knowing which forms are required, what estimated taxes should be paid, and how to take advantage of tax credits can be overwhelming.
Seeking the help of a bankruptcy attorney can help to simplify the process and provide assurance that your taxes have been completed accurately and on time.
Understanding Chapter 13 Bankruptcy
Under this form of bankruptcy, debtors propose a repayment plan to pay creditors over three to five years. Depending on the debtor’s income, this proposed plan is typically based on what they can reasonably afford to pay. Creditors have to approve the plan, and the court usually confirms it.
The debtor must then make regular payments to the court, which pays creditors according to the agreed-upon plan. This form of bankruptcy may also offer additional benefits depending on the situation, such as the ability to reduce certain payments or even eliminate some obligations.
It is important to understand the process and the potential consequences of pursuing Chapter 13 Bankruptcy before entering into it.
Contact an attorney for help today
If you are looking for the best way forward, we recommend contacting a bankruptcy attorney. You can reach Law Offices of Terrence Fantauzzi at (909) 552-1238 now to request a free legal consultation. We look forward to helping you find the best way to move forward.