Chapter 13 bankruptcy has many benefits, with the main one being that people who don't qualify for Chapter 7 often qualify for Chapter 13. It allows for higher incomes to continue to be made while paying down debts.
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.
With Chapter 13 bankruptcy, you're required by the court to repay some or all of your debt through a repayment plan.
Chapter 13 bankruptcy isn't liquidation bankruptcy, and it's not likely what you think of when you consider bankruptcy as an option. Chapter 13 bankruptcy is a way to consolidate your debts and to pay them down over a three-to-five-year period.
If you come to find that you have too much debt and no way out, your last option may be to learn more about bankruptcy.
Even though there are many benefits to a Chapter 13 bankruptcy filing, including the ability to pay back many of your debts through a repayment plan, there are also some potential disadvantages that could get in the way.
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.
If you have a past-due bill, there's a good chance you'll hear from a bill collector at some point. As frustrating as this can be, there are steps you can take to put this problem in the past once and for all.
Filing for Chapter 13 bankruptcy can solve many financial problems. But it's also easy to make a mistake when filing that slows you down and makes it difficult for you to improve your finances.
If you decide to file for Chapter 13 bankruptcy, you need to realize upfront that it will have a negative impact on your credit rating. There is no way around this, so you need to come to grips with this fact as soon as possible.