Even if you feel like you are drowning in debt, filing for bankruptcy is probably not your first choice. You may have several misconceptions about what this process could mean for you and your future, and these fears may keep you from moving forward with steps that may be beneficial for your situation. If you are facing foreclosure and dealing with other types of secured debt, Chapter 13 bankruptcy could be the right option for you.
Before you make any decisions that could impact your future, you would be wise to consider all of your options. Filing for bankruptcy is a significant choice, and you need to know all benefits and potential drawbacks as you seek to resolve some of your pressing financial concerns. Chapter 13 bankruptcy could offer you the opportunity to keep your home and reclaim a strong financial footing.
What will you get from Chapter 13?
Chapter 13 bankruptcy is an option for Virginia applicants who may earn too much to qualify for Chapter 7. It also offers you the opportunity to protect certain assets if it is important to keep your property. Some of the benefits to Chapter 13 include:
- It allows you to repay your debts over time in an organized, court-approved manner.
- You will be able to remain in your home and keep the property you are making payments on according to your bankruptcy plan.
- When the bankruptcy process is complete, you will emerge to a better financial future with fewer debt-related concerns.
While there are many benefits to Chapter 13 bankruptcy, it is not necessarily the best choice for every situation. Some of the potential drawbacks associated with this process include:
- This process can take anywhere from three to five years to complete.
- Filing for any chapter of bankruptcy will affect your credit and ability to get loans for years.
- Bankruptcy cannot relieve you from your obligations associated with child support, student loans and alimony.
If you think this could be the right option for you, it will help to first seek a thorough assessment of your case. A careful look at your financial situation can reveal how Chapter 13 could offer you a way out of your current debt problems. When making any major financial decision, it is in your interests to seek qualified guidance and to think about long-term effects before moving forward.