If you have reason to believe that Chapter 13 bankruptcy could improve your financial situation, you need to learn more about the many pros and cons. Neglecting to do so could lead you down the wrong path, and a mistake isn’t something you need at this point in your life.
Here are some of the many overlooked benefits of Chapter 13 bankruptcy:
- Less impact on your credit report: Did you know that a Chapter 7 bankruptcy will stay on your credit report for 10 years? However, with a Chapter 13 bankruptcy, it only remains on your report for seven years.
- Avoid foreclosure: If you want to save your home from foreclosure you should strongly consider Chapter 13 bankruptcy. You have the opportunity to make up for missed payments, which makes it easier to remain in your home.
- Lower future payments: With Chapter 13 bankruptcy, you can reschedule some secured debts. With the ability to spread them out over the life of your repayment plan, you can lower the monthly payment. This makes it easier to stay current in the months to come.
These are the types of benefits to focus on as you learn more about Chapter 13 bankruptcy in an attempt to determine if it’s best for you and your finances.
It’s never good that you have to think about any type of bankruptcy, but it’s nice to know that there are benefits if you must take action. As you learn more about the pros and cons, focus on your legal rights and the steps to take to put the wheels in motion.
Source: FindLaw, “Benefits of Chapter 13,” accessed May 24, 2018