By filing a Chapter 13 bankruptcy, you can negotiate an
interest-free debt-redemption plan. You can consolidate your debts and repay
your debt in between 36-60 months schedule. Chapter 13 does not require a means
test like Chapter 7 bankruptcy, and is the best suitable alternative for most
regular income-source people.
Chapter 13 bankruptcy was designed to facilitate people facing
financial trouble avoid foreclosure while gradually paying the debts off. When you file for Chapter 13 Bankruptcy the
debt are prioritized by the bankruptcy court and decides who get paid first.
To prove eligibility for a Chapter 13 debt-recovery plan, you must
have a regular source of income to repay the debt according to the plan
approved by the court. You should be able to manage living expenses. Also you have
to provide sufficient evidence that you will be able to make payments to the
court consistently.
The top 5 reasons to file Chapter 13 Bankruptcy are:
REASON # 1
The best advantage of filing Chapter 13 bankruptcy is that if all
payments have been made as scheduled, the court can admonish unsecured debt
remaining at the end of the plan.
REASON # 2
You can obtain the automatic stay. I.e. The creditors are legally
forbidden to contact you for debt repayment.
REASON # 3
You can freeze or negotiate certain secured debts to a lower
amount.
REASON # 4
You can safeguard the interests of your co-debtors from paying
obligatory amount which might otherwise occur in case of a chapter 7
Bankruptcy.
REASON # 5
The assets can be sold freely or transfer possession to a
relative.
REASON # 6
You can restructure your existing business through a repayment
plan.
REASON # 7
You can retain the non-exemptible property that might otherwise be
repossessed in a chapter 7 Bankruptcy.
