What is Chapter 13 bankruptcy? If you are at a point where you are getting calls day and night from creditors wanting to be paid and are unable to pay, then you may be looking for a way out. Chapter 13 bankruptcy is one option that you have. This can give you back your financial security and allow you to save your home from foreclosure, too. What are the advantages of Chapter 13?
Can Give You the Chance to Keep Your Home
Chapter 7, the other personal bankruptcy choice, does not offer you the opportunity to keep your home, as everything of value is liquidated. Chapter 13 can stop foreclosure proceedings and can offer you the ability to get your delinquent mortgage payments paid after a period of time. You must pay all the payments that are due, but this will allow you a way to make arrangements with your mortgage company to keep your home and get back on track.
Can Give You the Chance to Reschedule Debts
In addition to protecting your home from foreclosure, Chapter 13 can allow you to reschedule secured debts and even extend your repayment period. This can not only give you more time, but also lower the payments for you, which can make it easier to handle them. Many times this makes the biggest impact upon finances, because you may have simply gotten behind and been unable to catch up.
What is Chapter 13 bankruptcy? It may be your way to finally get a handle on your finances and keep your home. By acting as a sort of consolidation of your debts, where you make payments to the Chapter 13 trustee, you will be able to answer your phone without worrying about it being a creditor. For more information about this bankruptcy plan, contact your local bankruptcy attorney.