Thursday, January 10, 2013

Benefits of Filing Chapter 13 Bankruptcy


There are two types of bankruptcies consumers most often file.  The most common is a Chapter 7 bankruptcy but many people find Chapter 13 to be more beneficial.  While it’s true that some people must file a Chapter 13 because they do not qualify for a Chapter 7, others file Chapter 13 because of the many benefits it has over a Chapter 7.  Below are some reasons to consider filing a Chapter 13 bankruptcy.
  •  Save a Home from Foreclosure – Chapter 13 allows mortgage arrears to be paid over the life of the Chapter 13 plan (36-60 months).  The bankruptcy will stop the foreclosure and allow the homeowner time to get caught up on payments to save the home.
  •  Avoid or Strip a Second Mortgage – If a homeowner owes more on their first mortgage than their home is currently worth they may be able to eliminate or strip the second mortgage lien from a property’s title in a Chapter 13 bankruptcy. 
  • Cram Down Interest Rates – In most cases interest rates can be lowered for secured debt in a Chapter 13.  This includes secured debt for cars and even household goods. 
  • Cram Down Car Value – If more is owed on the vehicle than it is worth the amount paid to the car creditor in a Chapter 13 can be crammed down to the fair market value. 
  •  Preserve Your Chapter 7 Option – Chapter 7 can only be filed once every eight years.  While a person may need bankruptcy protection now to stop wage garnishment or creditor harassment they may also be anticipating more debt.  For example if a person has a medical condition and know they will be incurring medical bills due to cancer or another illness they may need the option of including the new debt in the future.  A Chapter 13 can be converted to a Chapter 7 in the future and debt incurred after the original Chapter 13 filing can be included in the converted Chapter 7 case.   To convert a person still must qualify for a Chapter 7 based on income and other factors that a bankruptcy attorney can explain in detail. 
  • Length of Time on Credit Report – A Chapter 13 bankruptcy remains on a person’s credit report for seven years whereas a Chapter 7 will show up for 10 years.
  • More Affordable – In some cases a Chapter 13 plan payment may be less than what a person is paying for their car, and the car would be included in the Chapter 13 plan payment.  By cramming down interest rates and loan values a Chapter 13 could save money in the long run compared to keeping the car in a Chapter 7 bankruptcy.

There are many factors to consider when deciding which bankruptcy case may be right for you.  Chapter 7 and Chapter 13 are both great options for solving financial problems.  However, before you choose which chapter to file, make sure you have all the facts and speak to an experienced bankruptcy attorney.    Most offer free initial consultations and I would recommend speaking to a local attorney in your area about what benefits you may expect from filing a Chapter 13 bankruptcy.

If you have questions regarding bankruptcy in Indiana please contact Jackson & Oglesby Law at (877) 489-0908 or visit us at www.IndyBankruptcyLaw.com. Jackson & Oglesby Law can assist you with all aspects of your bankruptcy case. If you have questions regarding Chapter 7 bankruptcy, Chapter 13 bankruptcy, stopping foreclosure or wage garnishment, avoiding liens, stopping law suits, discharging debt, etc. we can help! Please call us today for your free phone consultation to determine which bankruptcy may be right for you.

24 comments:

  1. Hello Friend nice post your update and very helpful information.

    How to file bankruptcy

    ReplyDelete
  2. The Chapter 13 of the bankruptcy code is for individuals who are willing to pay their debts within a period of three to five years. The good thing about this is that it can help you avoid wage garnishment. The drawback of Chapter 13 is that the legal fees may be higher than Chapter 7. Plus, you also have to pay for extra costs, such as trustee's fee and court fees.

    >Cade Culpepper

    ReplyDelete
  3. Chapter 13 allows for the debt to be paid back within 5 years i believe. It is certainly a great option for those who need time to get caught up without having to pay interest.

    ReplyDelete
  4. Thanks for sharing. I may need to file bankruptcy in Edmonton. I haven't been managing the business all that well.

    ReplyDelete
  5. Hi Dana! Thanks for the post. Being a legal writer, I always prefer Chapter 13 bankruptcy over Chapter 7 since the reason that in the former, you stand a chance to lose some of your valuables during the liquidation procedure. However, in Chapter 13, you just repay some or all of your debts taking a certain period of time. Moreover, Chapter 13 is relatively easier to file and there is no means test associated.

    Marc Brown
    Legal Writer
    OVLGroup

    ReplyDelete
  6. Thank you for sharing. Bankruptcy is a viable option that gives many honest, hard working people a safe alternative and a fresh start. Bankruptcy helps people who may have taken on too much debt, lost a job, went through a divorce, or had uninsured medical bills or other financial problems that have just become too overwhelming, to get back on their feet.

    - bankruptcy attorney Suffolk county, NY

    ReplyDelete
  7. Great article. I see both pros and cons with filing for bankruptcy, it really depends on the situation. For me, the benefits have been that I have been able to start on a clean slate. It was difficult at firsts, but I have learned so much, and I'm building my credit to a great number now. Totally worth it.

    ReplyDelete
  8. My brother is having a bankruptcy case now and he's looking for a helpful information like this. I will definitely share this to him so that he can solve this problems immediately.

    Chapter 13 Chicago

    ReplyDelete
  9. The blog is quite awesome that has provided me the best knowledge. Cincinnati bankruptcy lawyer

    ReplyDelete
  10. I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. After researching the web I found a loan program at http://www.cfsflex.com, they allow a
    mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. Good to see lending options coming back.

    ReplyDelete
  11. Good post! Thanks for sharing this information I appreciate it. God bless!

    bankruptcy law methuen ma

    ReplyDelete
  12. Yes it's true that there are lot's of different-different kind of the bankruptcy customers is present and if you also want to get the lot's of information related to the bankruptcy then about the online site I know that is really beneficial for you all.More Info

    ReplyDelete
  13. Find the latest used and new cars for sale.
    Great used car deals and prices.
    More here this link

    ReplyDelete
  14. Document Requirements for Filing and Maintaining a Personal Bankruptcy. ... considering filing for personal bankruptcy, what the process is and the advantages bankruptcy lawyers Las Vegas

    ReplyDelete
  15. Nice Article.Thanks for sharing the informative info and As an attorney in Bloomfield, NJ with over 25 years of experience successfully representing clients.
    New Jersey Lawyer

    ReplyDelete
  16. Do you need Personal Loan?
    Business Cash Loan?
    Unsecured Loan
    Fast and Simple Loan?
    Quick Application Process?
    Approvals within 24-72 Hours?
    No Hidden Fees Loan?
    Funding in less than 1 Week?
    Get unsecured working capital?
    Contact Us At :majidvijahlending@gmail.com

    LOAN SERVICES AVAILABLE INCLUDE:
    ================================
    *Commercial Loans.
    *Personal Loans.
    *Business Loans.
    *Investments Loans.
    *Development Loans.
    *Acquisition Loans .
    *Construction loans.
    *Business Loans And many More:

    LOAN APPLICATION FORM:
    =================
    Full Name:................
    Loan Amount Needed:.
    Purpose of loan:.......
    Loan Duration:..
    Gender:.............
    Marital status:....
    Location:..........
    Home Address:..
    City:............
    Country:......
    Phone:..........
    Mobile / Cell:....
    Occupation:......
    Monthly Income:....

    Contact Us At :majidvijahlending@gmail.com

    ReplyDelete
  17. The Chapter 13 of the liquidation code is for people why should willing pay their obligations inside of a time of three to five years. The fortunate thing about this is it can offer you some assistance with avoiding wage garnishment. The disadvantage of Chapter 13 is that the lawful charges might be higher than Chapter 7.
    Bothell attorney

    ReplyDelete
  18. Very informative post about Benefits of filing chapter 13 bankruptcy.
    If you are facing foreclosure on your home, auto repossessions or tax debts, Chapter 13 can help give you some breathing room.Almost all people who file Chapter 13 keep their assets.Chapter 13 New Jersey

    ReplyDelete
  19. The article has really peaks my interest. I am going to bookmark your site and preserve checking for new information.
    criminal defense lawyer nyc

    ReplyDelete
  20. Nice blog!! Thanks for sharing the informative info and I regularly read your blog.
    Foreclosure lawyer NJ

    ReplyDelete
  21. Hello Everybody,
    My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

    BORROWERS APPLICATION DETAILS


    1. Name Of Applicant in Full:……..
    2. Telephone Numbers:……….
    3. Address and Location:…….
    4. Amount in request………..
    5. Repayment Period:………..
    6. Purpose Of Loan………….
    7. country…………………
    8. phone…………………..
    9. occupation………………
    10.age/sex…………………
    11.Monthly Income…………..
    12.Email……………..

    Regards.
    Managements
    Email Kindly Contact: urgentloan22@gmail.com

    ReplyDelete
  22. Exactly..! Chapter 13 bankruptcy stays on your record for years, missed debt payments, defaults, repossessions, and lawsuits will also hurt your credit, and may be more complicated to explain to a future lender than bankruptcy.

    ReplyDelete
  23. Thanks for your listing..I am fortunate to have many clients who consider me their family lawyer. I want to be your attorney of first choice whether you need representation as a corporation, small business, or individual.Foreclosure lawyer NJ

    ReplyDelete
  24. Amazing blog ! you have shared such a important blog post keeping information about the benefits of mortgage even after bankruptcy. Thank you and please keep posting this type of blog.

    refinance rates pa

    ReplyDelete