Chapter 13 is one of the most beneficial options for people neck down in debts and struggling with their finances. If you are looking in to forms of bankruptcy and want to get rid of your bad financial situation, you might wonder if a Chapter 13 bankruptcy is the right solution for your situation. Bankruptcy lawyer Brian Linnekens shares a few benefits of chapter 13 bankruptcy. However all these points regarding bankruptcy should be read and understood under the guidance of an able bankruptcy lawyer like Brian Linnekens. Please ready the following benefits to make sure that you have a general understanding of the process and the benefits that can be expected once you file for bankruptcy.
Save your home from foreclosure:
Foreclosure is a legal process under which if any person suffers a financial situation and he/she is not able to return their debt then the rule for foreclosure is that your entire property will be transferred to your creditors by law. If you have received a foreclosure notice and want to save your home then you can file a chapter 13 bankruptcy. Chapter13 bankruptcy is simple and effective way to save your home from foreclosure. Foreclosure can be stopped with a repayment plan. According to the repayment plan you can pay back your debt within three to five years. The time period can be increased depending upon your income that you are receiving at the present time. In case you are filing for bankruptcy just to save your home you should first check out the others options like a loan modification with your financial institution. Filing for bankruptcy should be the last option.
Protect yourself from creditors:
As a debtor you are faced with creditors harassing you if you are not able to make your monthly payments on time or have missed out on a few of your loan payments in the past. Your creditors may be calling you daily to collect this past due balance. When you file for bankruptcy and hire a bankruptcy lawyer you can easily avoid creditor’s harassment. It creates a distance between the debtor and their creditors. In others words it saves the debtor from the creditor’s harassment because the bankruptcy lawyer directly calls up your creditors and tells them to stop calling you since you have filed for bankruptcy. Apart from that a chapter13 the trustee will distribute the payment to creditors received from you as fixed in your bankruptcy arrangement. When you file bankruptcy you should also hire a bankruptcy lawyer. A bankruptcy lawyer is very useful in that situation because he/she will contact your creditors to stop them from calling you. A bankruptcy lawyer may also get the courts to intervene if the creditors do not stop harassing you provided you have filed for bankruptcy.
Chapter 13 also helps in reorganizing and reducing debt. It will help you create a new plan to pay off your debts and gives you more time to meet your financial obligations. This is kind of a loan restructuring where all your debts are considered, a plan is worked out by keeping your income and expenditures in mind while protecting your interests in the long run and you are given an opportunity to pay back anything you owe to the financial institutions.
Save your nonexempt property:
According to chapter 7 your nonexempt property can be sold by your creditors if you are not able to pay your debt. But when you file your case with chapter 13 it is possible for the debtor to keep the nonexempt property because you are paying back a portion of your debts through your repayment plan in exchange for keeping all of your assets.