The Benefits of Chapter 13 Bankruptcy
As you may know, there are two primary types of bankruptcy that American individuals can file for: Chapter 7 and Chapter 13. You also probably know that Chapter 7 is a liquidation bankruptcy, which allows your non-exempt possessions to be sold to pay back your creditors, while Chapter 13 is a restructuring bankruptcy, which allows you to prepare a repayment plan to pay back your creditors.
But you might be wondering which form of bankruptcy offers the benefits that best fit your needs. It’s an important question anyone facing bankruptcy should be asking themselves. If you have questions about which type of bankruptcy is best for you, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A., by calling 561-353-2800.
Understanding Chapter 13 Benefits
In Chapter 13 bankruptcy, you submit a plan to the courts detailing how and when you will pay back your creditors, over a span of three to five years.
There are several key benefits of Chapter 13 bankruptcy:
- It provides protection from creditors
- It allows you to keep your property and real estate
- It allows you to steadily pay back your debts
- It puts you in the driver’s seat by letting you draft the terms
- It allows you to rebuild your credit more quickly and effectively than Chapter 7
Depending on your individual circumstances, Chapter 13 has some disadvantages as well. First, you need to have enough disposable income to make monthly payments. Second, if you miss even a single payment, the court will likely dismiss your case and you’ll be back to square one.
Contact Us
If you are considering filing for Chapter 13 bankruptcy and would like to learn more about it, contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates, P.A., by calling 561-353-2800.
