Debt can make life unbearable, especially once the creditors start calling. Unfortunately, if you ignore the phone calls, your creditors will reach out to your family, friends, and even your employers. If you have a steady income, and want to get out from under stifling debt, Chapter 13 bankruptcy may be the answer you've been looking for. Chapter 13 bankruptcy is for people who have the financial ability to make their payments, they just need a little time to get caught up. Here are three benefits you'll receive from filing for Chapter 13 bankruptcy.
Eliminate Unsecured Debt
If you're drowning in unsecured debt, such as credit cards, Chapter 13 can help you take control. Chapter 13 bankruptcy eliminates all your unsecured debt so that you don't need to deal with the harassing phone calls anymore.
Maintain Ownership of Home
If you own your home, you may be worried about losing it through a bankruptcy. While Chapter 7 will require you to walk away from your home, Chapter 13 does not. In fact, Chapter 13 allows you to maintain ownership of your home. The bankruptcy court will work with your mortgage company to modify your loan agreement, creating payments that you'll be able to afford.
Ensure More Manageable Payments
One of the problems with debt is that added interest from missed payments can force your payments to grow to an unmanageable size. That's where Chapter 13 bankruptcy can help. One of the benefits of filing for Chapter 13 bankruptcy protection is that it ensures more manageable payments. The courts look at your income and create a payment plan that you can afford. A court-appointed trustee will collect payments from you each month and distribute them to your creditors. That ensures that your payments are being made in a timely manner.
Gives You a Good Foundation to Start Over
If you're worried that filing bankruptcy will ruin your credit forever, you can stop worrying. While it will be more difficult for you to obtain new credit for a few years, the time you spend in repayment status will allow you to develop a good foundation for the future. After a few years, you'll be able to start working on rebuilding your credit history.
If you're so deep in debt that you don't see a way out, talk to your attorney about filing for Chapter 13 bankruptcy protection. This process can help you get out of debt so that you can start rebuilding. Visit a site like http://www.haven-law.com/ for more help.