When it comes to bankruptcy most people think of Chapter 7. In fact, more often than not, an individual doesn’t exactly choose to file a Chapter 13 bankruptcy. In some circles, it’s actually considered less than desirable to have to file Chapter 13 Bankruptcy In Wichita. However, like most misconceptions, a lack of understanding is the driving force. There are so many assumptions made about this type of filing, that many people falsely consider it to be a bad thing.
Provides Debt Relief
The most important thing to understand about Chapter 13 bankruptcy is the fact that it does in-fact provide debt relief. Finding yourself in a dilemma where you are unable to meet your financial obligations is not at all a desirable place to be, but this form of bankruptcy can help you recover from that type of situation. While Chapter 7 completely eliminates your debts, Chapter 13 helps to renegotiate the debts down to an amount that you can more easily afford. In many cases the original debt is reduced by more than 50 percent.
Increased Flexibility
It’s also important for you to consider the fact that Chapter 13 bankruptcy in Wichita typically comes along with an increased amount of flexibility, when compared to other options. Although Chapter 13 bankruptcy is typically spread out over a period of time, the courts are more than understanding that during this time period your circumstances can most certainly change. What was considered acceptable terms today might be completely different two years down the line. With this method of bankruptcy you have the opportunity to submit any proposed changes to the trustee for approval. With other options, any arrangements you’ve made are considered final.
Priority System
Many people are also unaware that Chapter 13 bankruptcy debts are paid according to priority. With this type of payment method you can ensure that your most important obligations are attended to first, such as a mortgage payment.
