Just like financial situations of different people vary, so does the type of bankruptcy. Although bankruptcy chapter 7 is arguably the most sought after bankruptcy by individual debtors, there are numerous reasons why debtors may need retain the best Chapter 13 Attorney. Here are a few advantages of Chapter 13.
Offers protection to your property
Perhaps the major reason why you may need to file your case under Chapter 13 is to protect your property against any claims by creditors. Chapter 7 requires that all non-exempt assets of the debtor to be liquidated and distributed among all eligible creditors. When it comes to Chapter 13, creditors are paid out your future potential incomes. Under Chapter 13, a debtor with the help of a bankruptcy lawyer proposes a repayment plan that if approved, comes into effect. Under this chapter, al the debts are consolidated into one debt and spread over a specified number of years. Therefore, it is one of the greatest remedies to foreclosures and short sales. However, in order for you to qualify for Chapter 13, you will need to pass a Means Test, be servicing a secured debt, or show that you have a stable future income.
The Best Alternative to Other Forms of Loan Consolidation
Debtors have access to numerous loan consolidation plans, but Chapter 13 has been viewed to be the most affordable, less strenuous alternative to debt consolidation. The other advantage of Chapter 13 is that debtors do not accrue fines or fees immediately after filing for bankruptcy. Additionally, they can be allowed to pay their debt balances at zero interest rates, making them the most convenient and affordable solutions to debtors who are struggling with huge debts.
Possibility of Paying a Fraction of What You Owe
The payment is usually spread over a period not less than 5 years. A debtor may only pay as little as 10% of the total debt and the balance is discharged upon the expiry of the 5-year plan. The other good news is that the forgiven debt is not subject to taxation as it is the case of normal debt consolidation. If you are stuck with paying your debts and don’t know where to start, Brent Sorenson & Associates P.C. will assign you the best Chapter 13 Attorney to help prepare all the documentation and file your issues for consideration. Connect with us on Facebook!
