A bankruptcy lawyer offers invaluable services to people who want to declare bankruptcy. One of their essential duties is to assist applicants in knowing the most suitable chapter for their situation. You can also consider seeking legal counsel to determine which chapter will offer the most financial relief. Your legal advisor will start by comparing chapter 13 and other bankruptcy chapters. They will explain that some people mainly fail to choose this chapter because it lasts a few years. However, regardless of this, they will recommend that you choose it for the following reasons.
You Will Be Paying What You Can Afford
Chapter 13 allows you to pay what you can afford, which might be a good option, especially when facing financial challenges. In this strategy, you must create a repayment plan and present it in court for approval. Your lawyer will assist you in preparing a realistic plan that will work best with your financial situation. Doing so may convince the court that you will manage to repay your loans by the set deadline. Your attorney may also help you create a plan that will reorganize expensive loan payments or defer them. They will do this if they realize you can't make payments as promised because you lost your job or have other financial obligations.
You Will Discharge More Debt
Since you will be paying what you can afford, there is a high possibility that you will not pay back all your debts by the end of the agreed period. Luckily, the court will wipe out all the dischargeable debts you will not have repaid by the time indicated in your repayment plan. However, if you manage to pay back all your debts, your chapter 13 bankruptcy will keep any further interest from accruing on rechargeable debts. You only have to pay your debt balance when you declare bankruptcy.
It Will Help You to Save Your Property
Chapter 13 will help you save your home if you declare bankruptcy before the date your creditors plan to acquire it. A successful application will give you time to repay your mortgage arrears. First, however, you must be able to make the monthly payments as indicated in your repayment plan. Doing so will enable you to clear your outstanding mortgage arrears by the set deadline, which will allow you to keep your house.
As you can see, chapter 13 offers numerous benefits to people struggling to clear their debts. Therefore, your legal advisor might advise you to choose it over other bankruptcy chapters.
Reach out to a bankruptcy services law firm for more information.