Chapter 13 bankruptcies are a restructuring and repayment bankruptcy. Unlike Chapter 7, which is a liquidation bankruptcy, Chapter 13 allows you to pay off a portion of your debt and discharge the rest. Each person's situation is different, and you should hire a Chapter 13 lawyer to determine which type of bankruptcy is best for you. However, there are a lot of advantages to filing for Chapter 13.
- Keep your assets. Since Chapter 13 involves repayment of most of your debt, you will most likely be able to keep assets such as your home and your car. A Chapter 13 Attorney can help you figure out what assets you will be able to keep when filing Chapter 13.
- Avoid wage garnishments. Filing for Chapter 13 means you will be making payments that you can afford and allow you to avoid wage garnishments that could take more from you pay checks leaving you unable to pay your rent or mortgage payments.
- Pay affordable monthly payments. Not everyone is eligible for Chapter 13, but if you are, your Chapter 13 lawyers will help you determine what you can afford to pay each month. You will be able to pay all of your bills without over stretching your budget.
- Save you money. When you file, late fees will stop piling up and interest will stop accruing. You may also be able to lower interest rates on some of your debts. You will also pay less each month, which can save you thousands of dollars each year while you pay off the debt.
- End harassing phone calls from debtors. As soon as you file bankruptcy, your debtors must contact your Chapter 13 Law firm, not you.
- Delay foreclosure of your home. While filing bankruptcy solely to avoid foreclosure could get sticky, it can give you a few more months to get current on your payments and avoid foreclosure all together. Because each situation is different, make sure you hire experienced Chapter 13 lawyers to help you.
- Discharge most of your debt. There are some types of debt that cannot be discharged such as student loans, back child support, or debt from a lawsuit filed against you. However, medical bills, credit card bills and many other types of debt can be eliminated by filing for Chapter 13.
- Protect co–signers. You can classify debts in different categories, allowing you to pay off debts with a co–signers in full and protect them from being liable for you debts.
If you are considering filing for bankruptcy in Florida, you should hire experienced Chapter 13 attorneys to help you. Chapter 13 is the most complicated type of bankruptcy and should not be filed without the assistance of a lawyer