The decision to file bankruptcy is not an easy one. There are many questions to be asked and considerations to be made. However, with the ongoing persistence of debt collectors, and the ever present inability to get on top of payments, there comes a time when bankruptcy is simply the best option. In fact, for many people, the decision to file bankruptcy is the best thing that could have happened.
If you are trying to decide whether or not you should file, here are some important things you should know about Chapter 13 Bankruptcy. For many individuals, Chapter 13 Bankruptcy is the very best solution.
You Pay As Much As You Can
By filing under Chapter 13 Bankruptcy, you are given the chance to pay for accumulated debt over a period of approximately 3-5 years. The length of time and the monthly payment amounts are determined by you and your bankruptcy attorney, according to your financial ability to pay.
This “pay what you can” method is extremely appealing to many individuals. The debt is eliminated over time, without crushing your financial budget.
Excess Debt Is Discharged
Since your monthly payments are decided based upon your financial ability to pay, it might be impossible for you to pay the entire amount within the allotted time period. In fact, most of the people who file Chapter 13 Bankruptcy do not pay back the entire amount. Many only pay back a small portion of the initial debt amount. When this happens, the excess debt amount is discharged, leaving the individual debt free.
For those who are able to pay back 100% of the debt, Chapter 13 Bankruptcy can prevent the accumulation of additional interest, helping you to avoid excessive interest fees.
Keep Your Home
Along with other accumulated debt amounts, Chapter 13 Bankruptcy makes it possible for past due mortgage payments to be paid back over the allotted time period. With this advantage, many individuals are able to keep their homes after filing bankruptcy.
Lien Stripping
If you have several mortgages, it might be impossible for you to pay for anything beyond the first. If this is the case, your bankruptcy attorney will help to determine if you qualify to have additional mortgages removed. If you qualify for lien stripping, the additional mortgages will be removed and you will not be required to pay.
What To Do Next
Chapter 13 Bankruptcy may be just what you need to get out of a devastating financial burden.
For more information, call 888-748-0025 and speak with a qualified bankruptcy attorney from California Bankruptcy Relief.
