Why Should I Repay My Debts Through Chapter 13?

: Chris Lee Law Firm

  Filed under: Chapter 13

chapter13Who wouldn’t say “yes” to this question? However, there are instances in which people need help repaying their debts and have not been successful on their own. If you can afford to repay your debts through manageable monthly payments, Chapter 13 bankruptcy can provide many benefits that are  not found when attempting to get out of debt on your own.


Repaying your debts on your own is an appreciated action, but isn’t always the best option for some people. If creditors have been calling, sending letters or attempting to collect on a debt while you were working to repay your debts, you know how frustrating it can be. In many cases, once a debt is turned over to a debt collection company, those collection efforts will continue even if you are making payments to the creditor directly. When you enter Chapter 13 bankruptcy, all collection efforts will stop.  In fact, you will be legally protected from being contacted by creditors as long as you are making your payments as outlined in the Chapter 13 plan.

If you have received a notice of foreclosure or repossession, you understand the importance of acting fast to keep your home. Working to get caught up on delinquent secured debts, such as a mortgage or car loan, can be thwarted by creditor actions. Secured debt creditors are less flexible than others and act quickly when attempting to reclaim their property. Chapter 13 bankruptcy can stop a foreclosure proceeding or repossession as you work towards getting caught up  on your payments. Most people find it difficult to stop a foreclosure or repossession when acting alone to repay debts.

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