Although many people turn to Chapter 7 bankruptcy if they find themselves in need of financial help, it's important to remember that Chapter 13 could help improve your situation as well.
It goes without saying that you should compare the pros and cons of each type of bankruptcy, as this will impact your life in many ways. Even so, don't hesitate to gravitate towards Chapter 13 bankruptcy for the following reasons:
-- It can help you avoid foreclosure. This is one of the top benefits of Chapter 13 bankruptcy, as many people need assistance in saving their home. Once you file, you have the opportunity to stop the foreclosure proceeding. Even better, you can make up missed mortgage payments over time.
-- Less impact on your credit report. A Chapter 13 bankruptcy will remain on your credit report for seven years. This is a long time, but a Chapter 7 will remain in place for 10 years.
-- Reschedule secured debt. With the ability to reschedule secured debts, you can hang onto your property while also lowering the payment. For people who don't want to shake up their life, this is a big benefit.
Before you do anything in regards to bankruptcy, it's important to learn more about your many options.
Once you understand the benefits of Chapter 13 bankruptcy, you can decide if this is something that could improve your situation. If you find that it could, don't hesitate to learn more about how to file and get the help you need to move forward in the near future.
Source: FindLaw, "Benefits of Chapter 13," accessed Dec. 06, 2016