Understanding the Advantages Of A Chapter 13 Bankruptcy

Most often when individuals find out that they can only qualify for a Chapter 13 bankruptcy they are really disappointed. They want to bring their financial problems to an abrupt closure which they know can happen with a Chapter 7 bankruptcy relief. However, there may be reasons that they cannot qualify for the Chapter 7, and have no alternative but to utilize the advantages that a Chapter 13 will offer them.

One of the biggest factors about this form of bankruptcy is that it often allows those that are at risk of losing their home because of foreclosure some protection from this happening. This chapter of bankruptcy can put a stop to any proceedings in the foreclosure that has started and may be able to help with the mortgage payments that are behind. It will still mean that they have to continue making their mortgage payments on time.

Another great advantage to this form of bankruptcy is that it allows the individual that is in trouble to reschedule their debts and extend the payment plan for them. For individuals that have had co-signers and are also now in trouble because of this, the Chapter 13 may provide better protection for them.

You can basically look at a Chapter 13 bankruptcy as a consolidation of your debts where you will make consistent payments as determined by the bankruptcy courts. To really know if you are applicable for this chapter and whether it is right for your financial circumstances you should seek out the services of a qualified bankruptcy attorney.