Chapter 13 bankruptcy is a legal process that allows individuals to reorganize their debts and create a repayment plan that is tailored to their unique financial situation.
This type of bankruptcy is often referred to as a “wage earner’s plan” because it requires the debtor to have a steady source of income to qualify.
Here at Berken Cloyes PC, our bankruptcy attorneys will assist you with any bankruptcy or debt consolidation situation.
Benefits of Filing Chapter 13 Bankruptcy
Here are some ways that chapter 13 bankruptcy can help you repay your debts:
- Reduced Monthly Payments: Under chapter 13 bankruptcy, you may be able to reduce your monthly debt payments by consolidating them into a single payment. This can make it easier to manage your debts and ensure that you can make your payments on time.
- Extended Repayment Period: Unlike chapter 7 bankruptcy, which is a liquidation process, chapter 13 bankruptcy allows you to create a repayment plan that lasts for three to five years. This extended repayment period can make it more manageable to repay your debts without the need for drastic lifestyle changes.
- Protection from Creditors: Filing for chapter 13 bankruptcy also provides protection from creditors, including foreclosure and repossession. This means that you can keep your home and other assets as long as you continue to make your payments as outlined in the repayment plan.
- Reduced Interest Rates: In some cases, chapter 13 bankruptcy may allow you to reduce the interest rates on your debts, which can save you money over the long term.
- Forgiveness of Some Debts: Depending on your financial situation, some debts may be eligible for forgiveness under chapter 13 bankruptcy. This can help you achieve a fresh start and get back on solid financial footing.
Chapter 13 bankruptcy can be an effective way to repay your debts and achieve financial stability.
By consolidating your debts, creating a repayment plan, and taking advantage of the protections and benefits provided by this type of bankruptcy, you can get your finances back on track and move forward with confidence.
If you are struggling with debt, consider speaking with a bankruptcy attorney to determine if chapter 13 bankruptcy is right for you.
If you would like to learn more about chapter 13 bankruptcy in Denver, Colorado Springs, Fort Collins, Boulder, Loveland or any nearby area, call us today at (303) 623-4357 to schedule an appointment.