Many people are aware of the numerous benefits a Chapter 7 bankruptcy can offer, but few actually understand the advantages of a Chapter 13. In most cases, a Chapter 13 offers you more flexibility and the following benefits:
- · Consolidation of debts. The Chapter 13 bankruptcy process focuses on reorganizing your debt. You create a plan of repayment setting forth how you will pay your creditors by making one affordable monthly payment to the trustee, who then distributes the funds according to the terms of your plan.
- · Discharge of unsecured debts. Your unsecured debt, including credit cards and medical bills, are paid a percentage of what is owed. In many cases, the debtor is only required to pay back a small percentage of the unsecured debts owed.
- · Home and vehicles. If you are past due on your mortgage payments or your car loan, your Chapter 13 plan can provide for you to get caught-up. Your plan lasts for 3 to 5 years, so you can make small monthly payments in your plan to apply towards your delinquent balances.
- · Discharge of second mortgages. Some debtors may be able to eliminate their second mortgage in a Chapter 13 case, depending on the value of their home and the amount owed on their first mortgage.
The above are just a few examples of the advantages offered by filing a Chapter 13 bankruptcy. To learn more, contact the legal at at DeLadurantey Law Office, LLC.
If you are considering filing for bankruptcy protection, call DeLadurantey Law Office, LLC, at (414) 377-0518. We can also be found can be found on the Internet and on Facebook. We believe that each client should receive the individual attention necessary to reach their financial goals. Recognizing the needs of working clients, we maintain a flexible schedule and offer evening appointments. Initial consultations are always free, and phones inquiries are always welcomed.