In the event that you don't qualify for Chapter 7 bankruptcy, you shouldn't necessarily assume that it's time to move past this idea. Instead, you may come to realize that Chapter 13 bankruptcy is an option for improving your financial standing.
Here are some of the top reasons to choose Chapter 13 bankruptcy:
- You don't qualify for Chapter 7: It may be frustrating to realize you don't qualify for Chapter 7, but there are many benefits of Chapter 13 bankruptcy. This is typically the top reason for choosing Chapter 13.
- You're okay with the idea of repaying debt: Some people would rather repay their debt over the course of a three- to five-year payment plan, as it gives them peace of mind in knowing they did the right thing.
- To save your home from foreclosure: Through a Chapter 13 bankruptcy filing, you may be able to permanently stop the foreclosure process, thus allowing you to remain in your home despite your past troubles.
- You want to keep your car: Just the same as your home, a Chapter 13 bankruptcy filing can stop the repossession of your car by repaying any missed payments and future debt through your payment plan.
There are other reasons to consider Chapter 13 bankruptcy, but these four could lead you down this path in the future.
As you take the time to learn more about Chapter 13 bankruptcy, it'll become clear as to whether this is something that can improve your financial life. If it is, you should learn more about the process and your legal rights, as the knowledge you collect will help you move forward in the appropriate manner.