Most debtors considering bankruptcy hope that they will qualify for Chapter 7 bankruptcy ; but if they don't they can become very disappointed. If you are unable to qualify for Chapter 7 bankruptcy, don't despair.
Although discharging all of your debt in Chapter 7 bankruptcy has it benefits, Chapter 13 bankruptcy also offers its own set of excellent benefits for debtors:
- Chapter 13 bankruptcy will allow debtors to make reduced payments which can amount to a much lower percentage of what they pay now.
- Chapter 13 bankruptcy still offers automatic stay protection, which stops creditors from taking collection actions against you while you're in bankruptcy.
- Chapter 13 bankruptcy simplifies repayment of debts by allowing the debtor to make one easy payment which will be distributed to creditors.
- Chapter 13 bankruptcy allows debtors an opportunity to repay delinquent debt over a 3 to 5 year period, free from creditor harassment and threats.
- Chapter 13 bankruptcy only remains on your credit for 7 years.