Have you been thinking about filing for bankruptcy? If so, you may have questions about which type of bankruptcy is right for you. While Chapter 7 bankruptcy can certainly help those who want to get their cases over with quickly or avoid having to pay back any portion of their debts, there are benefits to filing a Chapter 13 petition as well. For those who would like to know whether Chapter 13 bankruptcy will bring them the debt relief they are looking for, read on to discover several advantages of filing a Chapter 13 petition:
1. When you file for Chapter 13 bankruptcy, the courts will grant you an automatic stay. This means that your creditors must cease in their debt collection efforts. The harassing phone calls will stop, and any negative actions like repossession, wage garnishment, or foreclosure will be halted. Consequently, working with a lawyer to file a Chapter 13 petition can help you stay in your home or keep your car.
2. If you are not up to date with your mortgage payments, filing for Chapter 13 will give you the opportunity you need to get back on track with those payments so that you can make up for lost time. For many people, the debt repayment plan that they create with the help of a Bankruptcy Attorney in Lancaster PA gives them the structure they need to begin making up missed payments so that their loan terms can be reinstated.
3. In a Chapter 7 bankruptcy petition, your loan cosigners may still be responsible for the debt, and there is a chance that your creditors will begin contacting them for repayment after your debts are discharged. Rather than putting a strain on your relationship with your cosigner, it may be better for you to consider a Chapter 13 repayment plan. Most people file a bankruptcy petition with one goal in mind: to begin working towards true financial freedom.
As you do so, you’re likely to have questions about whether you’re making the right decisions that will put you on the right track to achieving your financial goals. Fortunately, a Bankruptcy Attorney at The Law Offices of Going and Plank in Lancaster PA can help answer those questions. If you’re considering filing for bankruptcy, call the Law Offices of Going and Plank to discuss your options and whether a Chapter 13 petition is the best fit for you.
