Benefits of Filing a Chapter 13
Why should someone file a bankruptcy chapter 13? Whether you are facing foreclosure or behind on your car payment, you should consider filing a Chapter 13 bankruptcy. This type of bankruptcy will help you keep your home if you qualify and reduce your debt. Usually, a repayment plan will last three to five years. The plan is a written document describing the trustee's payment schedule. It will include how much the trustee will pay each creditor and how long the repayment plan will take. The length of the plan will depend on the value of your nonexempt property. Types of Debt To Discharge in a Chapter 13 Bankruptcy The most common types of debt that are discharged in a Chapter 13 proceeding are personal loans and credit card balances. Other debts include medical bills, child support, criminal fines, and long-term obligations. In addition to reorganizing your loan payments, a Chapter 13 bankruptcy can also allow you to wipe out secured debt, such as a mortgage or second mortgage. This...