Benefits Of A Chapter 13 Bankruptcy

: Reese Baker & Associates

  Filed under: Chapter 13

chapterMany times individuals checking out their bankruptcy options are often disappointed when they find out they have to go with a Chapter 13 bankruptcy. Usually this disappointment is not justified and is as a result of not fully understanding the differences between a chapter 7 bankruptcy and a chapter 13. Most people think that with a chapter 7 bankruptcy that all of their debts are wiped out and they get to keep everything, which is really not the case.

Comparing Chapters

The chapter 13 bankruptcy focuses more on reorganizing your finances so you can meet many of your financial obligations. Once you meet with a bankruptcy attorney and they explain the chapter 13 bankruptcy to you in detail, you will most likely change your mind about your negative feelings towards this type of financial relief. In order for you to have qualified for this bankruptcy you would have had to prove to the courts that will have the means to be able to make payments on some if not all of your debt. There are also other criteria that have to be met as well.

Some of the benefits that come with this particular Houston bankruptcy is your payments will be arranged in such a way that they are affordable. You could have some debts discharged where you do not have to pay them in full. Your home may be saved from foreclosure and possibly a 2nd mortgage or higher may be removed. One of the biggest drawbacks to this type of bankruptcy is that it is drawn out over a longer period when compared to a chapter 7 bankruptcy.