If you are interested in filing for personal bankruptcy, you will have a big question to answer early on: Is Chapter 7 or Chapter 13 bankruptcy the best option?
While many people immediately gravitate toward Chapter 7, due to the fact that they can discharge most their debt, some find that they are not eligible. This brings them back to Chapter 13.
Fortunately, if you find that Chapter 13 bankruptcy is your only option, there are many benefits of this type of filing. These include but are not limited to:
— Ability to pay back creditors over the course of your repayment plan, which typically lasts three to five years.
— You get to keep the property you are making payments on.
— You will feel better about yourself, knowing that you repaid some or all of your debt as opposed to having it discharged.
These are just three of the many benefits associated with Chapter 13 bankruptcy. Even if you qualify for Chapter 7, it is important to compare the pros and cons to Chapter 13, as this is the only way you will know for sure which option is best for you and your finances at the present time.
Once you are familiar with the benefits of Chapter 13 bankruptcy, along with any drawbacks that could get in the way, you can make a decision as to whether or not now is the time for moving forward. What matters most is that you are comfortable with how this will change your life now, as well as the impact it will have in the future.
Source: FindLaw, “Pros and Cons of Declaring Bankruptcy under Chapter 13,” accessed Sep. 15, 2015