If you are facing overwhelming debt, then you're likely looking for debt relief. There may be many options available to Texans, including Chapter 7 and Chapter 13 bankruptcy, but figuring out which is the right fit can prove confusing. Depending on your circumstances, Chapter 13 bankruptcy may be in your best interests, particularly if you're interested in keeping your assets. This post will examine the advantages of filing for Chapter 13 bankruptcy.
Chapter 13 of the bankruptcy code provides many advantages to debtors. First, under this type of bankruptcy your debts are reorganized and you are put on a repayment plan. A bankruptcy trustee oversees your debts, so you simply make a payment to the trustee who then distributes the money to your creditors. This means that you do not have to have contact with your creditors. This can eliminate creditor harassment, helping put your mind at ease.
You are also more likely to be able to keep your assets under this type of bankruptcy. For example, upon filing your bankruptcy petition, the court will issue an automatic stay on any pending foreclosure proceedings. This means even if you are facing foreclosure proceedings, you will be able to keep your home for the time being, and you will be given more time to repay any owed payments. You will, of course, have to make your normal mortgage payments during the course of your bankruptcy plan, but the additional time can allow you to get your financial house in order and make up any owed payments.
If you are facing financial difficulties and are afraid of losing your home, then you may want to consider filing for Chapter 13 bankruptcy. However, since this post cannot promise any particular result in your bankruptcy filing and moreover there is no guarantee that a petition will be granted by the court, you need to be prepared to prove that you meet certain requirements. To learn more, Texans like you can seek assistance from an attorney experienced in this area of the law.
Source: United States Courts, "Chapter 13 - Bankruptcy Basics," accessed on March 18, 2017