When you file for bankruptcy under Chapter 13 of the bankruptcy code, you have an opportunity to repay your debts according to the terms of a plan which lasts between three to five years. For someone who needs a more manageable way to handle their obligations, Chapter 13 offers numerous benefits. 

Keeping Your Assets

Unlike Chapter 7 bankruptcy which requires you to liquidate all non-exempt assets, Chapter 13 allows you to keep your property while repaying your creditors. If you have a home and want to avoid foreclosure, or need to keep your car from being repossessed you can negotiate a way to become current, Chapter 13 can be a good option. 

Chapter 13 Offers an Alternative to Chapter 7

While Chapter 7 allows debtors to liquidate and discharge their debts, it is not available to all debtors. For those who do not qualify for Chapter 7 but still want to manage their obligations, Chapter 13 can be a positive alternative.

The Plan Can Give You Time to Regroup

Under Chapter 13, you will have a repayment plan for all of your qualifying debts. This plan will have terms which will be developed based on numerous factors such as your disposable income, sources of income, and proposed repayment amounts. You will have between three to five years to complete your plan during which you can reorganize your finances and work on improving your spending and saving habits.

You Can Save on Interest and Fees

One benefit of Chapter 13 is that once you begin your repayment plan, your debts will not accrue interest or incur late fees.  Your repayment total will be approved by the bankruptcy court and cannot increase beyond your filing date. 

Consulting with an experienced bankruptcy attorney will help you in determining if a Chapter 13 bankruptcy is right for your circumstances. We have the knowledge and experience you need to help explore and benefit from your Chapter 13 bankruptcy. Please contact us online or by phone if we may be of assistance.  http://bestmichiganlawyer.com/contact .