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.