A Lot of people don’t even know what bankruptcy is, not to talk of filing a bankruptcy, so what is a bankruptcy, it is the state being in debt and unable to pay for that debt,now there are different bankruptcy chapters but we will be talking about the bankruptcy chapter 13. Nobody wants to be in bankruptcy for years so it’s better to file for one. Okay so what is bankruptcy 13, it is also called a wage earners plan, this helps individuals or companies with a regular income to develop a plan to repay all debts, under this chapter 13, debtors are allowed to propose a repayment which could either come installmentally over three years and that saves a lot of stress. If you live in tennessee you should engage experts in TN chapter 13 law for your debt issues.
Now let us take a look at the benefits of chapter 13 in detail.
- Credit Report: This bankruptcy chapter is shown on a credit report for 7years and this is extremely important because creditors will be able to use their credit reports for common expenses.
- It helps with foreclosure: This is the best of all, helping to save money at home foreclosure, this helps to avoid any form of foreclosure as far as they are able to.maintain normal monthly Mortgage payments.
- It helps with car payment: Chapter 13 debtors who find themselves with Having issues with car loans should just calm down because chapter 13 can help secure the debt, and the debtor does not have to worry.
- it’s also helps with Mortgages modification: Chapter 13 will not help you dictate to your creditor when you will pay but it also helps to force them to modify your mortgage.
- it’s less expensive when you file upfront: Another good thing about chapter 13 is when you file upfront you have better advantage because you will not be charged much.
- it’s also helps to reduce the interest rate on your car: For chapter 13 you are only allowed to pay a reasonable interest on your car loan so it automatically helps you save more.
- It also helps you to learn how to budget your money better: If you have good attorney like KNOXVILLEBANKRUPTCYATTORNEY, you will have a realistic budget, though for some people this may be the first time they are analyzing their finances so as to understand how much they Saving and how much they spending but as far you have the right attorney you don’t have any problem, Budgeting is a very important key to financing freedom.
Looking at the bankruptcy chapter 13 you would see that it’s has a lot of efficiency and it’s very flexible, you could see that if one wants to have a long lasting financial solution it’s better to adopt chapter 13 and the benefits are so numerous but I will just stop on seven and it is important to know that you can still file chapter 13 even if you have already filed chapter 7 bankruptcy.