Sitting under a mountain of debt is overwhelming, no matter your job status or income. Repaying debt can be a very difficult situation, which is why many people look into bankruptcy as an option. For some, it is their only option. For others, it is a last resort. Here are the benefits of filing for Chapter 13 bankruptcy.
One of the biggest advantages of filing for Chapter 13 is the fact that you can avoid foreclosure on your home. This is different from Chapter 7. Even if your home is in the foreclosure process, it can be stopped almost immediately by filing for Chapter 13.
Another popular advantage of filing for Chapter 13 is that it will only appear on your credit report for seven years. Chapter 7 will sit on your credit report for a total of 10 years. Obviously, the option you choose for filing is based on your individual situation, but this is something to consider.
Under Chapter 13 bankruptcy you can reschedule any secured debts to your name, except for a primary residence mortgage. You will also be able to extend the repayment of these debts for the life of the Chapter 13 plan, which can help to reduce the amount of monthly payments.
If you have accumulated debt to the point where you struggle to make monthly payments, it’s time to do a little research into your options. Take a look at our website for more information on Chapter 13 bankruptcy and how it can benefit your situation in Long Island.
Source: FindLaw, “Benefits of Chapter 13,” accessed Sep. 04, 2017