Heading towards financial ruin is one of the most stressful feelings ever. Whether you’ve gone broke due to medical expenses, bad investments or poor financial choices, bankruptcy may be a viable solution. Chapter 13 bankruptcy allows you to repay some of that debt and here are several more advantages.
Avoiding Foreclosure
If your home has already gone into foreclosure, filing for Chapter 13 bankruptcy Toledo OH will halt it in its tracks. Not only does it stop the foreclosure, but now you’re able to reorganize those late payments into a monthly amount you can afford. Then, you must continue to make your payments on time.
Retaining Assets
When you file Chapter 13 bankruptcy, you’ll keep your home and other assets instead of selling them off to pay debts. However, you’ll still pay for them per your repayment plan which lasts three to five years. As long as your income is enough to make this payment, Chapter 13 is a smart decision.
Making One Payment
Much like a consolidation loan, Chapter 13 bankruptcy allows you to combine your payments into one. Creditors are not allowed to call or harass you while you’re in repayment. You can also reschedule other secured debts into your Chapter 13 plan which may lower your payments.
Saving Your Credit
Any type of bankruptcy affects your credit score. With Chapter 13, you repay your debt instead of liquidating it. This is looked upon more favorably by future creditors. Chapter 13 bankruptcy appears on your credit report when you file and between two and four years after discharge. This is less time than other types of bankruptcy.
If you’re in serious financial trouble and are considering bankruptcy, Chapter 13 is a good decision. You’ll retain your assets, avoid foreclosure and get your credit back on track quicker.
