First, what is chapter 13 bankruptcy?
Chapter 13 is a reorganization debt, here you will have to pay all your debts in the way the court plans a repayment. It goes on for 3 – 5 years and helps you keep all your assets. To be allowed to file under this you must have a regular income.
- Discharges your unsecured debts-
When filing under chapter 13 bankruptcy, most of your unsecured debts are discharged. Some of the examples of unsecured debts are credit cards, medical bills, payday loans, signature loans, and personal loans. While paying off your debts under chapter 13 most of these will be discharged.
- Lien strip on the house of the debtor-
If it is seen that the amount you owe on the first mortgage is more than the original value of the house, then the court might “strip” off your second mortgage on your house.
- Stops foreclosure-
When filing under chapter 13 bankruptcy an automatic stay is placed, that is it stops collection efforts, foreclosures, or repossession. So if you did not pay your mortgage payments on time and have fallen behind and the mortgage company is forced to take past due repayments under the chapter 13 bankruptcy plan and will have to stop the sale of the house.
- Cram down on vehicles-
If you have bought your vehicle 910 days before filing for Chapter 13 bankruptcy and if your vehicle loan is much more than the original cost of the car then it may be possible “cram down” the amount that you owe to the creditor to the value of the car.
- Decreasing of interest rates-
Filing under chapter 13 bankruptcy helps you by decreasing your interest rates on your debts.
If you want to file for bankruptcy do not hesitate. It is all right to file for bankruptcy and start a new financial life. If you live in or near Los Angeles & Dallas, TX, and want a good experienced legal counsel contact Recovery law group– (888-297-6203). We can help you make the right decisions and help you get the maximum benefits out of your bankruptcy case filing.