6 Benefits of Chapter 13 Bankruptcy
Filing bankruptcy is an important decision, and you should first consider what chapter to file your bankruptcy under. People usually take two types of bankruptcy into consideration – Chapters 7 and 13. There are several benefits to Chapter 13 bankruptcy that could tip the scales to its favor, especially if you hire an expert Chapter 13 bankruptcy attorney in San Diego to represent you. Let’s explore what some of the biggest advantages of this bankruptcy chapter are.
What are the benefits of filing Chapter 13?
Chapter 13 is among the two most popular forms of bankruptcy in the United States. The basis of all Ch 13 bankruptcies is the creation of a detailed repayment plan that grants the much-needed financial relief to individuals. Here are the most important benefits you can receive if you decide to file for bankruptcy under this chapter.
Perhaps the most important of all the benefits, bankruptcy under this chapter prevents foreclosure of your home. Additionally, this will also allow you to cure the delinquent payments for your programs over time.
Consolidating debt into a single payment
This characteristic of Chapter 13 has to do with the Debt Consolidation Plan, which reorganizes all of the remaining debts and grants you the opportunity to pay them off through a single monthly installment. What’s more, this means that you will only have to pay off a certain portion of your unsecured debt without incurring additional penalties or interest.
Keeping your home
It doesn’t matter how many mortgage payments you may have missed – Chapter 13 still grants you an opportunity to keep possession of your home. This remains true even if there is an active Foreclosure Complaint against you and you’re expecting your home to get sold. Also, you will not have to pay off all due mortgages with a single sum.
Possibility do discharge a second mortgage
Depending on how much your home is worth and how much money you owe on your first mortgage, you could discharge your second mortgage through Chapter 13. For example, if your home is worth $100,000.00, and you owe more than that amount on the 1st mortgage, you can avoid making payments on your second mortgage altogether.
Keeping possession of your car
No matter how far behind on your car payments you are – you will get to keep your vehicle even if it was repossessed. Additionally, there is no obligation to cure the default through a single payment. Also, you will save a certain amount of money by reducing your loan’s interest rate.
You will learn proper budgeting skills
Finally, by participating in the credit counseling course and financial management program, you will better understand your finances and learn how to budget and prevent further debt from appearing. Not only will you receive discharges, but you will also learn how to manage your funds.
Who are the foremost Chapter 13 bankruptcy attorneys in San Diego?
Chapter 13 is not the only form of bankruptcy you should think about filing. Chapter 7 bankruptcy also has many benefits, especially if you are aware of what not to do before Chapter 7. Similarly, Chapter 13 also requires you to be familiar with the entire process so that you adequately go through all the essential steps and ensure you receive the discharge and the relief you were looking for. Luckily, Chang & Diamond are here to help you with that.
We have many years of experience successfully handling Chapter 13 bankruptcy cases of clients all over San Diego. We will ensure you receive all the advantages of this bankruptcy chapter and handle the entire process in your stead. All you have to do is give us a call and schedule a consultation. Our offices are located near Marian Bear Memorial Park, so yo should have no trouble finding us. Give us a call today!