Chapter 13 is a section of bankruptcy code that helps to the qualified people or small proprietary business owners, who want to repay their debts but are in financial difficulty. Often it is referred to as mini chapter 11 as you generally repay something to the creditors and retain the property and make payments under the plan.
Chapter 13 can be filed by people who have regular income and people not having more than $250,000 in unsecured debt and more than $750,000 in secured debt.
Here are the several benefits of filing chapter 13 bankruptcy:
Bankruptcy Lawyers In Nashville TN, Bankruptcy Attorneys, Types Of Bankruptcy,
• A major benefit of chapter 13 bankruptcy is that it permits you to reduce the amount that you owe on most secured debts. Secured debts are those that if you do not pay, then you will need to return that item whether it may be car, house, or furniture.
• One more great benefit of filing Chapter 13 bankruptcy is that you can decrease the interest that you have to pay on a secured loan. In Chapter 13 you only have to pay most secured debts at the prime rate plus 1-3%, depending on the circumstances of your case.
• Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. Individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time.
• Chapter 13 bankruptcy allows people to reschedule secured debts and extend them over the life of the chapter 13 plan. Doing this may lower the payments.
• Chapter 13 also has a special provision that protects third parties who are liable with the debtor on "consumer debts." This provision may protect co-signers.
• Chapter 13 will act like a consolidation loan through which the person makes the scheduled payments to a trustee appointed by court who then allocates payments to the creditors. People will have no direct contact with the creditors through under its security.
• You may be able to discharge your second mortgage under chapter 13. Based on the value of your home and the amounts you owe on your first mortgage, it may be possible to discharge your second mortgage under this case.
• People can keep their car even if they are behind on payments. Filing chapter 13 helps to keep the car even you are far behind on the car payments.
• Also filing it can help to avoid wage garnishments.
• One can file chapter 13 immediately after chapter 7 discharge in order to pay the remaining debts.
The amount of your monthly plan payments is based on the sum you are able to pay following paying required living costs. At the end of 36 months, you will be discharged from all the dischargeable unsecured debts, despite of how much your creditors have obtained.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Court
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment