Benefits of Chapter 13 Bankruptcy

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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:

  1. Chapter 13 bankruptcy will allow debtors to make reduced payments which can amount to a much lower percentage of what they pay now.
  2. Chapter 13 bankruptcy still offers automatic stay protection, which stops creditors from taking collection actions against you while you’re in bankruptcy.
  3. Chapter 13 bankruptcy simplifies repayment of debts by allowing the debtor to make one easy payment which will be distributed to creditors.
  4. Chapter 13 bankruptcy allows debtors an opportunity to repay delinquent debt over a 3 to 5 year period, free from creditor harassment and threats.
  5. Chapter 13 bankruptcy only remains on your credit for 7 years.
By | 2017-12-13T02:30:13+00:00 November 6th, 2009|Chapter 13 Bankruptcy|Comments Off on Benefits of Chapter 13 Bankruptcy