Chapter 13 bankruptcy is widely considered as the most suitable method of obtaining debt consolidation and elimination in the U.S. Not only does it afford you with leeway in settlement of a debt, but also protects your assets from seizure by governmental institutions. When you file for Chapter 13 bankruptcy, you are assured of asset retention and a stable financial future, safe from prying hands of creditors.
When you have filed for Chapter 13 bankruptcy, you essentially create a favorable grace period that allows you to repay your debts in a systematic and affordable manner. In most cases, the grace period usually lasts between three to five years, after which the remaining unsecured debts are discharged. Despite its numerous benefits, several restrictions have been put in place to evaluate each application received. It is advisable to consult with a prominent bankruptcy lawyer regarding your current financial situation before filing for bankruptcy. By registering for Chapter 13 bankruptcy, you are guaranteed the following benefits:
- Ceasing foreclosure: Such a remarkable bankruptcy clause has the authority to halt a foreclosure before a sheriff directs a foreclosure sale. In the process, you are provided with ample time to pay back your mortgage balance in time. Additionally, you can file for the modification of the mortgage terms to make payments much easier than before.
- Co-signer protection: Fortunately, Chapter 13 bankruptcy accords your co-signer with the same protection from debt collection activities until your repayment plan is in order.
- Terminating repossession: With the power invested in it, Chapter 13 has the legal mandate to prevent finance companies from repossessing your car. The bankruptcy clause protects your vehicle from outstanding balances and past-due payments. In such a case, any unpaid balance accruing from the purchase of the car is paid via a third party entity.
- Merging student loans: With Chapter 13 bankruptcy, you are provided with the rare opportunity to consolidate your student loans and other personal bills pending payment. By hiring a specialized attorney, you can rest assured that any garnishment and collection actions are not serviced against your will.
When you have an excellent bankruptcy attorney by your side, you are assured of vital information tailored to meet your specific financial needs. Do not hesitate to contact a lawyer before your financial predicament is beyond legal assistance.