It goes without saying that you never want to find yourself filing for Chapter 13 bankruptcy. If you do, this means something has gone wrong with your financial life.
However, it's good to know that you can use Chapter 13 bankruptcy if the time comes.
In short, Chapter 13 bankruptcy gives you the opportunity to repay some or all of your debts via a repayment plan that lasts anywhere from three to five years. With this, you find yourself in position to keep your assets, such as your home.
Note: Chapter 13 bankruptcy does not have any impact on student loans, tax debt, alimony, or child support. Instead, you'll need to keep making these payments, even as the process moves through the court system.
In addition to the flexibility of keeping your assets, Chapter 13 bankruptcy also gives you protection from foreclosure and vehicle repossession. Along with this, the automatic stay ensures that creditors are unable to harass you as your case proceeds.
At our law firm, we know how important it is for people to understand their legal rights with regard to bankruptcy. While many people believe that Chapter 7 is right for them, some find that Chapter 13 is the way to go.
What matters most is that you make informed decisions that benefit you and your finances. Although you may do whatever it takes to avoid a Chapter 13 bankruptcy filing, if the time comes you should learn more as to decide if it's right for you. At some point, you may find that this is the best way to improve your financial situation.