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How Debtors Benefit from Filing Chapter 13 Bankruptcy

Posted By Allmand Law Firm, PLLC || 10-May-2013

Chapter 13 bankruptcy is a court-approved repayment plan based on the debtor's ability to repay. While the plan is not for everyone, it offers different benefits that debtors may find useful depending on their personal situation. While the plan can last anywhere from three to five years, this aspect alone is enough to discourage debtors from filing. But, there are positive attributes to consider with Chapter 13 that may make the case worth the wait.

Chapter 13 helps debtors retain personal property such as their vehicle, house, and other valuable possessions. As long as the debtor meets necessary qualifications based on their ability to make payments, the automatic stay provides protection to debtors during the duration of the case. Meaning, creditors will be unable to repossess, foreclose, or seize assets as long as the debtor makes payments according to the repayment schedule approved by the court.

Debtors often enjoy lower monthly payments with one payment being made to the trustee each month to cover outstanding debt. Unsecured debt is eligible for discharge at the end of the repayment plan and debtors can enjoy a fresh start when they successfully complete their filing. Few even experience more disposable income being available once they finish their plan.

Chapter 13 may help you pay debts such as back taxes or help you obtain an affordable payment if you were unsuccessful at negotiating with your creditor on your own. To get a better idea of how Chapter 13 can work for you or whether you meet qualifications, discuss your situation with an experienced Dallas-Fort Worth bankruptcy attorney.

Categories: Chapter 13 Bankruptcy
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