Facing financial trouble can be difficult and stressful. This is even more difficult when you are facing foreclosure. However, while the thought of filing for bankruptcy may be scary, it actually gives you more protections than continuing to struggle or losing your home.
Here is a list of pros to consider about filing for Chapter 13 Bankruptcy:
- You repay your creditors at 0% interest. On the other hand, most repayment plans through your creditor include interest rates.
No more creditor calls or threats
- Debt collectors are unable to contact you, loved ones, or your employers with threats.
Protection for your home
- The threat of foreclosure is removed.
- Also, the threat of liens is removed.
- Your mortgage company is required to provide transparent accounting. They must also provide a report to show that all arrears have been paid through your bankruptcy.
Protection from lawsuits
- You will not need to worry about additional lawsuits for your debts.
Fewer payments to make
- Instead of paying multiple creditors monthly, you send one payment to the trustee. Also, your trustee keeps track of all the money paid during and at the end of your case.
- The trustee and the court act as a wall of protection between you and your creditors. This is done by dispersing your payments fairly and evenly amongst your creditors according to your approved plan.
- If less money is owed than outlined in the proposed plan, you can get out of the plan early. Or, you can pay off the plan sooner.
Professional guidance included
- A professional bankruptcy attorney oversees your case for the full amount of time necessary.
- Attorney fees are included in your Chapter 13 plan payments.
The benefit of keeping your home and utilizing all the protections outlined above gives you the ability to repay your debts. Also, you will be in a position to drastically improve your credit score. So, are you are considering filing for bankruptcy? Do you just want more information on how bankruptcy can help your unique financial situation? Call our office to schedule a free consultation.