Wednesday, August 1, 2012

Benefits of Filing for Chapter 13 Bankruptcy

Benefits of Filing for Chapter 13 Bankruptcy

Posted on Aug 1st, 2012 King and King Bankruptcy Attorneys, Atlanta GA

When deciding to file for bankruptcy, you might think of filing for chapter 7 first. This can be for many reasons; one of the most alluring draws of chapter 7 bankruptcy might be the ability to discharge all of your debts. This can be tempting – a fresh start. However, there are numerous benefits to filing for Chapter 13, and in many cases it may be a better option.

Four benefits of filing for Chapter 13:

        You have the opportunity to save your home. By filing for Chapter 13, you will put a halt to all foreclosure proceedings and will be able to come up with a repayment plan that will best suit you. You will also be able to structure delinquent mortgage payments so that by the end of the bankruptcy, you will be caught up.

      Individuals can schedule secured debt payments over three to five years. By coming up with a repayment plan for all secured debts, debtors will be able to have a solid battle plan moving forward. Beyond that, debtors who do this and stretch their payments over the repayment plan may find that they have lower payments that are more financially feasible to pay off.

     Creditors will stop calling. One great source of relief to many debtors is that during the course of their bankruptcy, they will not be required at any point to interact with their creditors. Instead, they will make all monthly payments in one solid lump to their trustee who will then make the payments. You then only have to focus on making one payment and only need to interact with the trustee.

You are not at risk of losing any of your property. When you file for Chapter 7, your property is vulnerable to being liquidated to satisfy the debts that you owe to all of your creditors. This, however, is not the case in Chapter 13 bankruptcy. In fact, it is quite the opposite with debtors able to keep all of their property and coming up with a repayment plan that allows for them to make payments over the course of several years instead.

One of the most important decisions you can make is who you choose to counsel you during your bankruptcy proceedings.
Call King and King in Atlanta Georgia for experienced help today.  404-524-6400