If you are still not aware of what bankruptcy is all about, it makes sense to mention that this process that helps businesses and ordinary people liquidate their debts. Before taking this step, one of the main things that you need to do is to determine the right type of bankruptcy to file for.
You should understand that each chapter may have its pros and cons, so it is necessary to think about your particular situation. For example, if you have outstanding debts and want to save your car or house, it is advisable to think about Chapter 13 bankruptcy. The best part about this type is that it helps people avoid the process of foreclosure.
If you decide to file for Chapter 13 bankruptcy, this is when you will have to create a special consolidation repayment plan. This factor usually depends on a number of crucial factors, such as your current income, loan amounts, and so on. The key concept of this method is that you have to pay off your debts on regular installment, and they are taken from your salary. If you want to find out whether this option is suitable for you, it is a clever idea to consult with a qualified bankruptcy attorney.
Besides, you should learn more about the main benefits that can be obtained when filing for Chapter 13 bankruptcy.
a) When taking this step, you are going to get a specific consolidate repayment plan, and this is how it becomes possible to keep your valuable property. You will be able to pay off your debts in several years.
b) You will be provided with an instant stop order in terms of your debt collectors and foreclosure actions. This procedure also cures your past due mortgage payments.
c) It is advisable to choose this type of bankruptcy if you want to avoid your income tax levy.
d) This legal process will help you get rid of financial pressure and credit harassment. This means that you will protect yourself from annoying creditors and their calls.
e) You are going to protect your property at the same time.
f) This is how you will be able to develop an effective plan to handle your mortgage payments.
g) You can make a choice whether you want to sell your house or settle on a foreclosure process.
h) It is possible to lower your interest rates in some specific situations.
i) You are able to avoid a variety of payments, such as sewer bills, due taxes, and so on.