ADVANTAGES OF CHAPTER 13 BANKRUPTCY IN BRANDON FL
What Can Chapter 13 Bankruptcy Do For You?
Chapter 13 bankruptcy offers people in debt a way to see themselves clear
of an impossible burden, without the problems that may be associated with
filing for immediate debt discharge under Chapter 7.
When you file for Chapter 13, you will be working with your attorney to
develop a realistic goal to incorporate all of your debt into one repayment
plan, to be supervised by a trustee of the U.S. bankruptcy court. Typically,
your payment plan can extend from three to five years, depending upon
your income level. Upon successful completion of the plan, all remaining
unpaid debt, will be discharged.
Chapter 7 bankruptcy, you get immediate protection from your creditors. But there
are additional advantages. If your house is going into
foreclosure, or your car into
repossession, the Chapter 13 process puts an
automatic stay on all collections,
garnishments, liens and other recovery actions by your creditors. You can even strip
off any second or third mortgage you added to your original mortgage and
include it in your court-supervised plan. Chapter 7 won't allow you
to do that. It is a great way to keep your house and car, while reducing
your total monthly bill payment and saving thousands of dollars over the
course of the original loan terms.
If high monthly
student loan payments are causing your debt problems, Chapter 13 is an excellent option
to help you temporarily reduce your monthly payment. You can include your
student loans and other government-backed debt, including tax arrears,
into your plan. In fact, repaying your tax arrears through Chapter 13
is better than a voluntary repayment plan. Penalties and interest on the
arrears stops accruing. Interest on student loans continues to accrue
during the length of the plan.
When you file for Chapter 13, your
credit report won't take the hard hit that a Chapter 7 will cause. Creditors know
that you are meeting your obligations and you have the cash flow to pay
them back. Yes, your credit rating will take a hit. It is still bankruptcy,
after all, but you can improve your rating quickly by following some simple
steps. Many people secure a car loan within a year of filing.
Learn more about the advantages of Chapter 13 bankruptcy by talking to
an experienced Florida bankruptcy lawyer at The Golden Law Group.
Contact the firm to schedule a free consultation. Offices are conveniently located
Bradenton, Florida. The firm represents clients in communities throughout Manatee
County, Hillsborough County and
Sarasota County, Florida.