For many years, filing for bankruptcy was considered some sort of failure. Today, that perception has changed drastically and many are opting to file for bankruptcy as a way to get a fresh start and there’s absolutely no shame in that. However, even if you’ve made the decision to file, the ins and outs of the process can be confusing, so it can be advantageous to know some of the basics.
With that in mind, let’s talk about some of the perks to Chapter 13 bankruptcy. Chapter 7 has typically been a more popular course for some debtors because it eliminates a host of unsecured debts. But, there are many reasons why Chapter 13 is a better route than Chapter 7:
- It can help you keep your home from being foreclosed upon.Chapter 13 stops most foreclosure proceedings and sets up a repayment plan that might be more manageable for the debtor.
- It can stop your car from being repossessed. If you rely on a car for work and life, losing it can be devastating. With Chapter 13, you can set up a repayment plan that will let you keep your vehicle. In fact, if you’ve owned the car for more than two years, you may be able to get a reduction ? essentially paying only what the car is worth, plus interest. This is especially useful when you owe more than the vehicle’s current value.
- You can hang on to nonexempt property. Chapter 7 bankruptcy can often mean the selling off of nonexempt property to pay off creditors. Chapter 13 lets you keep it.
Of course, filing for bankruptcy can be a difficult and confusing process. An attorney can sit down with you to discuss your case and may be able to help you start your financial life again.