Bankruptcy

What Are The Benefits Of Chapter 13 Bankruptcy?

By
David F. Mills
on
August 27, 2019

If you are unable to pay your bills and feel like your debt is spiraling out of control, then Chapter 13 bankruptcy may help you and your family to take control over your finances.

Our bankruptcy clients are often responsible, hard working and caring. However, life circumstances may cause financial difficulties that are outside of their control.

If you are unable to pay your bills and feel like your debt is spiraling out of control, then Chapter 13 bankruptcy may help you and your family to take control over your finances.

There are a lot of misconceptions about bankruptcy and the bankruptcy process. Many people believe it is a measure of last resort for those who overspend and are careless with their money. However, many people need bankruptcy through no fault of their own. They may have medical debt that is impossible to pay off. They may have lost their jobs and are unable to make mortgage payments. Sometimes, our clients have to choose between putting food on the table or filling their gas tanks so they can get to work.

If any of these situations sound familiar to you, then Chapter 13 bankruptcy may be the way out of debt. A Chapter 13 bankruptcy will help you restructure your debt so that you can pay it off over the course of three to five years, giving you the breathing room you need to get your finances in order and get the fresh start you deserve.

The Benefits Of Filing Chapter 13

There are many benefits of filing bankruptcy under Chapter 13.

  • Filing for Chapter 13 creates an injunction against debt collections, meaning that your creditors can no longer contact you.
  • Filing for Chapter 13 stops foreclosures, repossessions, wage garnishments and other collection efforts.
  • You debt will be consolidated into an affordable monthly payment.
  • You are able to keep most, if not all, of your property.
  • You may have the ability to have some debt forgiven, so that you can focus on paying down your mortgage.
  • You can leave the Chapter 13 process completely debt free.

Is Chapter 13 Bankruptcy Right For You?

Even though Chapter 13 bankruptcy offers people many benefits and provides a path to financial freedom, many eligible debtors are hesitant to file for bankruptcy. You may find yourself in the same position, questioning whether Chapter 13 bankruptcy is right for you and your family.

Even if you just have questions about the process, it is important to discuss your options with a bankruptcy attorney. Together, you and your attorney can look at your income, your assets and your debt to determine a path toward a fresh financial start.

To schedule a consultation with one of our North Carolina bankruptcy attorneys, contact Mills Law today.

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