Possible benefits of seeking relief through Chapter 13 bankruptcy

On Behalf of | May 12, 2022 | Bankruptcy |

Financial challenges can take on various forms and fashions, and dealing with similar forms of strain can be a stressful and daunting endeavor. Regardless of how it happens, if you face dire financial straits, you might be in search of a way to regain control over your situation and protect your financial future.

While bankruptcy might be just the tool to help you achieve such a goal, concerns about the possibility of losing your assets or failing to qualify might give you cause for hesitation. Addressing some of the possible benefits of seeking relief through reorganization could help you overcome reservations and prepare to protect your future.

Relief through reorganization

Chapter 13 bankruptcy could help you reorganize your finances and make monthly payments to pay down certain amounts of your debt over a set period. Some possible benefits of such a path might include:

  • No liquidation: While Chapter 7 bankruptcy may call for the liquidation of certain non-exempt assets, Chapter 13 may allow you to retain ownership of all your possessions, provided you adhere to the repayment plan.
  • Eligibility: Even if your income is above the limit to file for Chapter 7 bankruptcy, you may still be eligible to seek relief and reorganize your finances though Chapter 13 bankruptcy.
  • Reduced payments: While seeking relief through reorganization, your monthly payments may prove significantly less burdensome than your obligations prior to filing for bankruptcy.
  • Creditor protection: Chapter 13 bankruptcy may not only provide you with protection from creditors, but this protection could also extend to those who co-signed on certain debts.
  • Discharge of debts: While Chapter 13 bankruptcy may involve making payments on debts via reorganization, some of your remaining debts may still be eligible for discharge once you complete the process.

Payments in a reorganization plan may go toward paying down various forms of debt, ranging anywhere from credit card and medical bills to tax and mortgage debts.

Knowing your options

While the bankruptcy process could help provide you with much needed debt relief, choosing to file can still be a major financial decision. Seeking advice on federal and Florida state bankruptcy laws could help provide you with insight on all your available options and help you prepare to make informed choices about your situation. Such a decision may also help you prepare to take the necessary steps to protect your financial future by choosing a path for relief that best aligns with your interests and needs.