While nobody wants to file for bankruptcy, it is often the best way to get on your feet financially and get out from under your debts. However, to take full advantage of your bankruptcy filing and get out ahead of your debts, you’ll have to manage them correctly and utilize the right processes. When it comes to a bankruptcy filing, the ultimate goal is to get out of debt without losing assets or having to foreclose. In that respect, chapter 13 bankruptcy gives you the best chance of success. In today’s blog from Groce & DeArmon, P.C., we offer four reasons why you should choose chapter 13 bankruptcy.
1. You Will Have More Time To Pay Off Your Debts
The thing that makes chapter 13 bankruptcy different from chapter 7 bankruptcy and other filing options is that it establishes a payment plan. If you are struggling to stay caught up on your payments, whether they be on your car or your home, chapter 13 bankruptcy will give you more time to pay off those debts through this payment plan. And in the meantime, you will receive the protection of an automatic stay, halting all efforts from creditors to collect money from you.
2. Chapter 13 Bankruptcy Helps You Keep Your Assets
As stated earlier, the ultimate goal of anybody seeking the relief of bankruptcy should be to do so without losing assets. This isn’t always possible, but the goal should be to catch up on your debt without losing your home or vehicles. With chapter 13 bankruptcy, the discharge of your debt comes through a payment plan and not the seizing of assets, so at least while you are under the umbrella of chapter 13, most of your assets should be secure.
3. Chapter 13 Protects Co-Debtors
A common fear for businesses when filing for bankruptcy is the effect it will have on investors. As individuals, that same fear can be present for co-debtors. In most cases, a codebtor comes in the form of a cosigner, usually on a loan for a home or vehicle. Cosigners do this at their own risk, knowing that the debt can fall back on them. However, as a borrower, you don’t want your co-debtors to be pulled into your bankruptcy. With chapter 13 bankruptcy, creditors will stay away from any co-debtors or cosigners as long as you are making your payments.
4. You Can Catch Up On Your Mortgage or Car
In many cases, debt piles up in the form of a mortgage or car payment. Chapter 13 bankruptcy is a good way to help you catch up on those payments while also lessening the risk of repossession or foreclosure.
Contact Groce & DeArmon, P.C. For More Information Or Tips
Bankruptcy is stressful, but it can be even worse if you don’t utilize the right processes. For more information or advice on chapter 13 bankruptcy, give Groce & DeArmon, P.C. a call at (417) 862-3706 or contact us online for more information today.
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