Boston bankruptcy attorneys

Benefits of Chapter 13 Bankruptcy

Chapter 13 Bankruptcy has a number of benefits. There are so many, in fact, that it would be impossible to list all of the potential benefits to every person that files for Chapter 13 bankruptcy. The most important thing to keep in mind is that it is possible to file for Chapter 13 bankruptcy even if there is a previous Chapter 7 filing on your record. Another benefit is that Chapter 13 provides a great deal of flexibility.

Chapter 13 bankruptcy is similar to a debt consolidation plan but with several big differences. First, not all debts have to be paid back under chapter 13. Second, the creditors have no choice but to accept your Chapter 13 case, as long as it complies with all parts of the bankruptcy code. Third, the trustee deals with the creditors, while you just pay the trustee.

In the majority of Chapter 13 cases, an individual is only required to pay back a very small percentage of his or her unsecured debts. This is done without further interest or penalty. In many instances, the percentage is as low as 1%.

Another benefit is that it costs less up front to file for Chapter 13 bankruptcy than it does for Chapter 7 bankruptcy. While the overall payments for Chapter 13 bankruptcy are higher, the payments at the beginning of the process are much lower. In addition, there are creative ways to finance the initial payment which allows the filer to retain enough money for day-to-day expenses.

In addition, Chapter 13 allows the debtor to retain his/her house and car, even if mortgage and car payments aren’t quite on schedule.

Contact a Boston Bankruptcy Lawyer

For more information on filing for bankruptcy and its benefits, contact the Boston bankruptcy lawyers at Joshua Spirn & Associates at 1-800-975-5346 to discuss your case and to determine your legal options.