Chapter 13 Bankruptcy Offers Long-Term Financial Benefits
Many people fear the number 13 and regard it unlucky or inauspicious, but when it comes to bankruptcy, Chapter 13 can prove to be quite lucky for you. This chapter can be the most advantageous for long-term finances. Although the time period of repayment may seem long, about 3-5 years, but it can empower you monetarily and give you a huge relief from mounting debts.
5 Superb benefits of Chapter 13
- It lets you pay an affordable monthly payment
- It discharges debts that you are unable to pay in full
- It saves your home from foreclosure
- It can eliminate a higher or second mortgage
- It gives you a fresh start in finances and provides long-term advantage
A competent bankruptcy attorney in Northern Virginia can help you file the chapter properly and assist in charting out a new consolidated debt repayment plan that is easier for you to pay every month.
Consolidating your scattered debts
It can be a nightmare to have multiple debts. Every month, you must struggle to pay each debt and also maintain your budget. There can be times when you miss a payment or two.
Chapter 13 of bankruptcy consolidates all your debts into one monthly payment. The amount is fixed on the basis of your ability to pay every month. Your bankruptcy lawyer sits with you and assesses your present financial situation, your income source, Chapter 13 trustee’s standards, and other such factors.
Thereafter, the lawyer fixes an amount after deducting all your monthly essential expenses. This amount that you pay to the trustee is known as discretionary income.
What if you do not earn?
In case you have lost your job and have no income source, an experienced bankruptcy attorney will assist in charting out a payment plan that reorganizes your higher loan payments or defers your payments until you get a job or have enough income.
Discharge of debts
According to a renowned bankruptcy attorney in Northern Virginia, in most of the cases, people are unable to pay 100 per cent of their debts, in spite of the amount being reorganized to suit their budget. This is because people usually pay what they can afford and not more. As per lawyers’ observations, clients are able to pay only a fraction of what they owe over a period of 3-5 years.
The dischargeable debt amount that you are unable to pay, are wiped out. This gives you a huge relief and an opportunity to start afresh.
Indeed, Chapter 13 offers a convenient debt repayment plan!
Importance of lawyer in bankruptcy
Bankruptcy laws are complicated. Even if you know them, you may not be as experienced in handling a bankruptcy case as a lawyer is. Besides, a single omission or mistake can dismiss your case and it is difficult to file again.
That’s why it is important to have a qualified and competent attorney by your side who specializes in bankruptcy law. You can easily find an affordable bankrutpcy attorney in Maryland. They can also help in choosing the right chapter for you.