It's a common misconception that you have to be broke or earn an extremely low income in order to obtain relief through Chapter 13 bankruptcy. As you learn more, you may find that it's the best way to not only deal with your debt but to also improve your financial future.
Here are some of the top benefits of a Chapter 13 bankruptcy filing:
- Prevent foreclosure: It's scary to think you could lose your home to foreclosure, but if you've slipped behind on payments, it's a possibility. Upon filing for Chapter 13 bankruptcy, the automatic stay will bring the foreclosure process to a halt. You can then take steps to make up for missed payments, thus allowing you to save your home.
- Less impact on your credit report: Even though a Chapter 13 bankruptcy shows on your credit report for seven years, it's three years less than Chapter 7. It doesn't sound like a big deal up front, but you'll come to find that it's a benefit as you inch closer to the seven year mark.
- Reschedule secured debts: For example, you can reschedule your car loan by extending it over the life of your repayment plan. Not only does this have the potential to lower your payment, but it also puts you in position to save your property from repossession.
- Relief from creditors: There's nothing worse than hearing from creditors, day in and day out. From letters in the mail to phone calls, this has a way of taking its toll on you. The automatic stay makes it illegal for creditors to contact you.
These are some of the many benefits that should have you considering Chapter 13 bankruptcy if you're seeking a way to stabilize your finances.
With a Chapter 13 bankruptcy filing, you're able to repay your debt at zero percent interest over a three to five year period. Furthermore, you may be able to reduce the amount of debt to pay back, thus improving your situation even further.
Filing for Chapter 13 bankruptcy is a big decision, so learn more about your legal rights before taking the first step. This will put you in position to make a confident decision that benefits you now and in the future.
Visit our website for more information on Chapter 13 bankruptcy in Illinois and what it can do for you.