While many people consider Chapter 7 bankruptcy to be the best method to get out of debt, others need to file a Chapter 13 bankruptcy. If you are behind on your mortgage, car or truck payments, owe money to the IRS, owe back child support payments, owe on non-dischargeable debts, or owe on other assets you want to keep, Chapter 13 is the best way to restructure your obligations, recover from debt problems, and keep creditors from repossessing assets you want to keep.
Furthermore, if you are unable to file Chapter 7 bankruptcy owing to a high income, Chapter 13 bankruptcy may be the best alternative for you to assist you regain financial stability. To find out if Chapter 13 bankruptcy is suitable for you, contact Bethlehem Bankruptcy.
Unlike Chapter 7, Chapter 13 bankruptcy requires you to pay your creditors on a monthly basis. Your monthly payments will be determined by how much you can afford over and beyond your typical living expenditures. Your mortgage, car or truck payments, health insurance, food, clothing, and other usual living expenses are examples of normal living expenses. A Chapter 13 plan has a three-year or five-year lifespan. Regardless of the amount paid to your creditors by the Chapter 13 trustee, you will get a discharge of any unpaid, unsecured debt at the end of the three or five-year term.
Chapter 13 bankruptcy permits you to keep property that would otherwise be liquidated in a Chapter 7 bankruptcy. This implies you might be able to maintain your home, car, and business if you file for Chapter 13. If you’re in danger of losing your home due to foreclosure, this could be a viable option.
Your monthly payments are sent to a Chapter 13 trustee, who divides them among your creditors and pays them according to the bankruptcy plan. A Bethlehem Bankruptcy Lawyer can provide you with further information regarding Chapter 13 bankruptcy monthly payment arrangements. The monthly payments are frequently based on the amounts due for a house or a car.
There are a number of other advantages to filing for Chapter 13 bankruptcy. It shields you from creditors’ collection activities and helps put an end to any lender harassment you may have been subjected to. Your credit ratings will normally improve after you have made timely payments to a Chapter 13 trustee for a period of time. You will be able to rebuild your credit in a shorter period of time. When looking at Bethlehem debt relief options, think about Chapter 13 bankruptcy because it brings these many benefits that can put you back on the path to financial freedom.
Contact our Bethlehem Bankruptcy debt relief expert today who can help you determine whether Chapter 7 bankruptcy is an option for you. Call Bethlehem Bankruptcy Lawyer for a FREE CONSULTATION at 610-510-2073.