Making the decision to file for bankruptcy is not an easy choice. Many people have a negative perception of this process, but in reality, it offers many benefits for those facing significant debt and past-due balances. Chapter 13 is a specific bankruptcy option beneficial for those who are facing the threat of foreclosure on their homes.
If you are past-due on your house payments, you are probably getting letters and phone calls from your lender. They want you to make a payment or pay the past-due portion of your balance immediately, but what if you cannot afford to do that? The threat of losing your home is incredibly overwhelming, but filing for Chapter 13 can actually halt that process because of the automatic stay.
Benefits of Chapter 13
Chapter 13 is a beneficial bankruptcy choice for those who want to stay in their homes or who earn too much to qualify for Chapter 7 bankruptcy. It also goes by the term of wage-earners bankruptcy. Some of the benefits of this process include:
- You can follow a court-approved and affordable debt repayment plan that will let you catch up and eventually resolve many of your balances.
- You will get to keep your property while under Chapter 13 bankruptcy protection, including your home and car.
- There is no limit to how many times or how frequently you can file for Chapter 13 bankruptcy.
- Upon filing, the automatic stay goes into effect, which will halt all creditor contact.
While there are many benefits to filing for bankruptcy protection under Chapter 13, this may not be the right choice for your individual situation. It is important to make sure you make choices that make the most sense for your finances, types of debt you owe and long-term objectives. A careful evaluation of your case can help you make practical and beneficial decisions.
Discover your options
Making the choice to file for bankruptcy is not easy, which is why you will find it helpful to have the support and guidance of an experienced Tennessee attorney at every step. Starting with an assessment of your case, you can learn more about the benefits available to you through Chapter 13 bankruptcy. Don’t delay in learning about how a better financial future could be available to you.