The question of whether or not you should file a Chapter 13 bankruptcy in Philadelphia is one that has no simple answer. This may be just what you have been looking for as a means of improving your financial situation. At the same time, it could be a mistake to file for bankruptcy right now.
Before you make a final decision, here are two things you should do:
- Compare the pros and cons of Chapter 13 bankruptcy and Chapter 7 bankruptcy. This will give you a clear understanding of what each has to offer and how your situation will be impacted.
- Consult with a bankruptcy attorney who can explain the ins and outs of Chapter 13, ensuring that you understand what you are getting into.
Many people don’t qualify for Chapter 7, based on their income, so they must opt for Chapter 13. Don’t look at this as a bad thing, however. Instead, you should realize that there are benefits of this type of filing.
When attempting to decide if Chapter 13 bankruptcy is right for you, learning more about the benefits will help you move forward.
Many people turn to Chapter 13 as a means of saving their home from foreclosure. This allows you to stop the foreclosure process for the time being, putting you in position to negotiate with your lender and get back on track.
Another benefit to consider is this: you can reschedule secured debts through Chapter 13 bankruptcy. This allows you to extend payments over the course of your repayment plan. As a result, you will have lower payments, which will put you in a better financial position.
With all this in mind, you may be ready to move forward right away. Before doing so, here is one last thing to remember: Chapter 13 bankruptcy is similar to a “consolidation loan.” After filing, you are required to make payments to a trustee who will then distribute the money to creditors. The benefit is that you don’t have to directly communicate with creditors, removing the stress. Furthermore, when your repayment plan comes to an end you know that your debts have been paid.
Do you still have questions about Chapter 13 bankruptcy in Philadelphia? Are you still wondering if you should file? Contact an attorney who can review your finances and help you decide what to do next. There are many benefits of Chapter 13 bankruptcy in Philadelphia, but you cannot go down this path until you are 100 percent sure it is right for you.