Benefits of Filing for a Chapter 13 Bankruptcy
A Chapter 13 bankruptcy ruling allows you to create a repayment plan with your creditors. You get three to five years to pay off the renegotiated debts, with no further collection action allowed to be taken against you on any debts included in the bankruptcy case.
Although it may seem daunting to file for Chapter 13, it has many benefits that can help you get back on track with your finances. When looking to file for bankruptcy, it’s best to work with a Chapter 13 attorney. Midlothian, VA has a number of professional lawyers who specialize in bankruptcy cases and helping clients regain control over their finances.
Pay Less Money to Your Creditors
Some consumers find that all they can afford is the minimum due on the credit card bill each month, resulting in nothing but the interest getting paid each month. With Chapter 13, your debts will be renegotiated to a lower lump sum. If you owe hundreds of thousands in credit cards, bankruptcy can help you get that amount down to a few thousand. Your Chapter 13 attorney in Midlothian, VA will help you handle the process of contacting and negotiating with creditors.
Avoid Losing Your Property
Unlike a Chapter 7 bankruptcy where you must liquidate assets, you can file a Ch. 13 and still manage to keep your home and your vehicle. A Chapter 13 attorney in Midlothian, VA will help you stay in your home or avoid vehicle repossession, even if you’re currently behind on payments.
Begin Building Credit during Bankruptcy
Your attorney will discuss with you how it’s possible that paying your bankruptcy payments on time each month can help you start to rebuild your credit. Creditors sometimes view Chapter 13 more favorably than Chapter 7 since you are at least attempting to pay some of what you owe back to the company. While there are disadvantages to bankruptcy, filing for one doesn’t mean you will forever have the reputation of being unable to manage your money.
Is it a good idea to file Chapter 13? It’s best to talk to a Chapter 13 attorney. Midlothian, VA is served by website.com.