Chapter 13 Bankruptcy: 5 Benefits for the Average Consumer
You might consider bankruptcy if you feel overwhelmed by debt. Chapter 13 bankruptcy can provide several benefits to the average consumer. Here are the five top benefits of Chapter 13 bankruptcy.
- Protect yourself from foreclosure: If you are facing a mortgage default, Chapter 13 bankruptcy may help you catch up with your payments so that you can keep your house. The bankruptcy court will set up a plan to repay the missed payments in a period of three to five years.
- After you file Chapter 13 bankruptcy, an automatic stay is imposed. Creditors must cease all collection activities, including harassing telephone calls and wage garnishments. Enjoy peace of mind, knowing that creditors cannot bother you anymore.
- Chapter 13 bankruptcy lets you repay your debts over a period of three to five years. During this period, you will make a single payment to the trustee who will then pay your creditors. It can be easier to pay your debts this way than to try to make individual payments to creditors.
- Keep Your Property. In Chapter 13 bankruptcy you can keep all your personal property including your car, home, and other belongings. You will make payments to your debt but not have to surrender any assets.
- Improving Your Score: Although filing for Chapter 13 bankruptcy can have a negative effect on your score, it is also an opportunity to rebuild your credit. After you finish your payment plan and pay off your debt, you can begin working to improve your credit score.
Chapter 13 bankruptcy offers several benefits to the average consumer who is struggling with debt. It can protect you from foreclosure and stop creditors from harassing you, it can allow debt repayment, and it will protect your property, and improve your credit rating in the long term. It’s crucial to consult a bankruptcy lawyer to find out if Chapter 13 bankruptcy is right for you.
This post was written by Trey Wright, a Florida Bankruptcy Lawyer! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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