When you think of a bankruptcy, you most likely imagine a Chapter 7 bankruptcy, which is when an individual discharges all of his or her debts. However, this type of bankruptcy has its disadvantages despite letting you get rid of all your debt. And there are a few different kinds of bankruptcy that might fit your situation even better than Chapter 7 bankruptcy.
If you would rather create a repayment plan that lets you pay off your debt in a way you can manage, you may want to consider learning about the Chapter 13 bankruptcy facts and figures and how to file for bankruptcy.
But what is Chapter 13 bankruptcy and how can it help you? Here are four of the most important Chapter 13 bankruptcy facts that you should know:
1. Chapter 13 bankruptcy lets you repay your debt: If you feel a moral obligation to pay off the debt you have accrued, you should choose Chapter 13 bankruptcy. With the help of a Chapter 13 bankruptcy attorney, you can set up a monthly debt repayment plan that lets you pay off your debt over a three to five-year period.
2. Chapter 13 bankruptcy lets you keep your assets: Unlike a Chapter 7 bankruptcy, you get to hold on to all of your belongings and assets in a Chapter 13 bankruptcy. Your house will be safe from foreclosure, and your car and other belongings will remain yours.
3. Chapter 13 bankruptcy can remove a second mortgage: If you can’t pay for your second mortgage after filing for Chapter 13 bankruptcy, you can remove it through a process called lien stripping. That’s one of the best Chapter 13 bankruptcy facts — you will be able to keep your house.
4. Chapter 13 bankruptcy gives you a new start: Feeling overwhelmed by your debt is a scary thing. If you want to restart your finances and start making better choices with your money, you should consider filing for Chapter 13 bankruptcy. See this reference for more.