What are the Advantages of Chapter 13?
Chapter 13 bankruptcy isn’t for everyone. For many debtors, added fees for the U.S. trustee and the cloud of uncertainty associated with the three-to-five year payment period discourage some debtors. Moreover, many others do not even qualify under the Chapter 13 means test. In short, they make too much money to declare Chapter 13.
For millions of Americans, however, Chapter 13 is an available and reasonable option. Chapter 13 gives debtors the chance to consolidate their various outstanding debts into one, easy monthly payment. Additionally, Chapter 13 debtors can keep their property. Many debtors have real and personal property that is personally invaluable. Chapter 13 dramatically increases the likelihood that they can hold on to these near-and-dear assets.
For debtors who complete the Chapter 13 marathon and cross the finish line, Chapter 13 provides a clean slate. Specifically, unsecured debts which remain unpaid at the end of the applicable three or five-year period are eliminated, leaving many debtors with considerably greater disposable income in the years ahead.
Bankruptcy isn’t right for everyone, and Chapter 13, a particular kind of bankruptcy, may not be the best option for you and your family. On the other hand, for those debtors who may benefit from Chapter 13, the financial, emotional, and personal benefits can be enormous. Want to find out if this strategy is right for you? Contact the dedicated professionals at Fears Nachawati today. We’re here to help you.