Advantages of Chapter 13 Bankruptcy
Why should you consider Chapter 13 bankruptcy? You may be asking this question if you have decided to file for
bankruptcy, and it is important to seek the full information about the consequences of this action and how it may affect you in the future. There are various advantages of Chapter 13 bankruptcy in Long Island that should be discussed:
- Chapter 13 bankruptcy offers a debtor the chance to reorganize his or her debt, therefore still paying bills but at a level that is actually feasible.
- Stopping foreclosure is possible with a Long Island Chapter 13 filing, as it will place an automatic stay and will allow the debtor to include past due mortgage payments in his or her repayment plan.
- From the moment that a Chapter 13 case is filed, all creditors must stop collection efforts against the debtor.
- Although a Chapter 7 bankruptcy will not result in the discharge of secured debt (such as taxes or student loans) a Chapter 13 repayment plan may include secured debt as well.
- Upon the completion of a Chapter 13 bankruptcy payment plan, all remaining eligible debt will be discharged.
- Chapter 13 offers a debtor more protection of assets and property than a Chapter 7 bankruptcy.
- Co-signers on any loans the debtor may have are offered more protection under a Chapter 13 bankruptcy.
For those with regular income and property they would like protected, a Chapter 13 bankruptcy may be the best option.
Contact a Long Island Bankruptcy Attorney
Although there are many advantages of Chapter 13 bankruptcy, it is important to discuss all of these with a competent Long Island bankruptcy lawyer. Seeking information about how filing for bankruptcy will affect you now and in the future will help ensure you have the opportunity to make the right decision about your case and your financial future.