The Benefits of Chapter 13 Bankruptcy
As difficult as it may be to consider right now, there are significant benefits for people who use Chapter 13 bankruptcy to regain control of their finances. Chapter 13 bankruptcy is known as a wage earner’s plan whereby people with a regular income are allowed to repay their debts over the course of an installment plan that lasts anywhere from three to five years.
If you are considering Chapter 13 bankruptcy as a way to deal with your debt, reach out to a Fayetteville Chapter 13 bankruptcy attorney at the Bradford Law Offices, PLLC, to discuss what this process will mean for you. Until then, you may want to consider some of the more beneficial aspects of this form of bankruptcy.
Propose a Repayment Plan that Works for You
You are the one who will actually propose the repayment plan for your debts. Before you do so, however, consulting with an attorney can help you understand all of your options. Once you have all of the information you need to make an informed decision, our firm can help you file a proposal that is both realistic and in your best interests.
Saving Your Home from Foreclosure
Chapter 13 bankruptcy can be used to stop foreclosure on your home. In fact, you may actually be able to repay your delinquent payments over the course of your repayment plan. If you are able to save your home from foreclosure, however, you will still be expected to pay your mortgage payments over time so long as you are under Chapter 13 bankruptcy protection.
Reschedule Your Secured Debts
Your secured debts can be rescheduled with Chapter 13 bankruptcy. This will allow you to repay those debts over a longer period of time—usually for the duration of the Chapter 13 plan—which may actually make your monthly payments less than they are right now. In any event, you will be able to keep these possessions while you make more manageable payments to your creditors.
Make a Single Payment
When you begin to repay your debts under your Chapter 13 plan, you will be making a single payment to the impartial trustee that has been appointed to administer your case. This trustee will then distribute your payments to your creditors. Though it may go without saying, this arrangement will probably be easier than keeping track of the bills that need to be paid every month.
Stop Harassment from Creditors
Once you have a Chapter 13 plan in place, creditors are forbidden by law from attempting to collect on your debt. That means that you will not have to directly deal with your creditors for three to five years. Instead, your creditors will be forced to deal with your Chapter 13 trustee who will actually be distributing your payments to creditors.
Consult with a Chapter 13 Bankruptcy Attorneys in Fayetteville
At the Bradford Law Offices, PLLC, we have been helping the people of Raleigh get out from under their debt with Chapter 13 bankruptcy for over 20 years now, and our legal team can help you understand whether this form of bankruptcy will be best for you. To speak with a Fayetteville bankruptcy attorney at the Bradford Law Offices, PLLC, about the particulars of your situation, please give our firm a call at (919) 758-8879 today.