Despite the many benefits of Chapter 13 bankruptcy, some people shy away from this because they have yet to separate “fact from fiction.”
It is a common misconception that you will lose your house if you file for Chapter 13 bankruptcy. This is not always the case, as this type of bankruptcy allows you to reorganize your debt.
With Chapter 13 bankruptcy, you have the opportunity to keep your home. While you are required to make repayment plan payments for three to five years, as long as you continue to do so, your home is safe.
Do you own a home? Are you considering Chapter 7 and Chapter 13 bankruptcy? If so, you should almost always opt for Chapter 13 bankruptcy, as this is the best way to keep your property safe.
To ensure that you don’t bite off more than you can chew, it’s a good idea to make your monthly repayment plan payment as long as possible. This may mean accepting a five year payment plan, but a low payment makes it easier to avoid issues in the future.
If you continue to believe that you will lose your house in Chapter 13 bankruptcy, you may never move forward with this strategy. As a result, you could be missing out on something that can quickly improve your financial position.
As you learn more about Chapter 13 bankruptcy, including how your home and other assets are treated, you can make an informed decision on what to do next. This could be the one strategy that allows you to regain your financial footing.
Source: Bankrate.com, “Keep house with Chapter 13 bankruptcy,” Justin Harelik, accessed May 16, 2016