There are certain experiences that are extremely detrimental to a person's life: divorce, death of a spouse, and job loss or termination are just a few of these. Along with the emotional costs of these events, they can also create extraordinary financial hardship. Fortunately, filing for bankruptcy can provide a way out if you have experienced any of the many reasons people cite for filing for bankruptcy. Through Chapter 13 bankruptcy specifically, you can pay back just what you owe, get out of debt, start over with a clean financial slate, and save your home from foreclosure and repossession. Here is some more information on each of these benefits of filing a Chapter 13.
Pay Back What You Owe
In a Chapter 13 bankruptcy, the debts you owe will be reorganized. Essentially, you will still owe them, but your bankruptcy will allow you to pay off your debts through a more manageable payment, payable to the bankruptcy trustee. Truthfully, the repayment plan inherent with a Chapter 13 bankruptcy turns many people off. However, it can be a great opportunity to file for bankruptcy with your head held high, and most people appreciate the opportunity to pay back their debts.
Start Over with a Clean Slate
Despite the repayments, a Chapter 13 bankruptcy still allows you a clean slate from which to work. When your bankruptcy is discharged, you will not have any late payments on your home loan or auto loans to worry about, and you will have already given your unsecured debt a big kiss goodbye.
Save Your Home
One of the most common reasons that people give for filing for Chapter 13 bankruptcy is to save their home from foreclosure. This can happen to anyone, regardless of status or wealth. A Chapter 13 bankruptcy allows the debtor to file for bankruptcy, stick all those late payments into their reorganized payment plan, and pay back the arrearages on the loan over time. There is no scrambling to come up with enough money to keep your home, and going forward, all you have to do is make your mortgage payments in full.
Call a Professional
When you are considering bankruptcy for any reason, consider the many advantages of filing a Chapter 13 bankruptcy. If you are wondering whether bankruptcy is right for you, contact a lawyer to talk about your options and whether there are any alternatives that will allow you to accomplish your financial goals.