It's hard to imagine a situation in which you see bankruptcy as a good thing, but there may come a point when you find yourself in this position.
As you learn more about Chapter 13 bankruptcy, you'll come to find that there are many benefits. Here are just a few to consider:
- Prevent foreclosure. If you're unable to make your mortgage payments and foreclosure seems imminent, a Chapter 13 bankruptcy filing could be just what you need to stop the process dead in its tracks.
- It only stays on your credit report for seven years. While this sounds like a lot, a Chapter 7 filing will remain on your credit report for ten years.
- Reschedule secured debts. With the ability to do this, you may be able to lower your payments. Subsequently, you'll find it much easier to make your payments in the future, thus lessening the likelihood of more trouble.
- Automatic stay. Once you file for Chapter 13 bankruptcy, creditors must cease collection activity. This will give you some room to breathe, allowing you to implement a plan of action without creditors making your life miserable.
These are not the only benefits of Chapter 13 bankruptcy, but they are among those that help many people believe it's best for them.
If you're struggling with your finances and unsure of what to do next, don't hesitate to learn more about Chapter 13 bankruptcy. Once you understand the process and where you fit in, you can decide if it makes sense to push forward or learn more about your other options.
Source: FindLaw, "Benefits of Chapter 13," accessed May 08, 2018