Talk To A Bankruptcy Lawyer About Filing Chapter 13 Bankruptcy}

Talk to a Bankruptcy Lawyer about Filing Chapter 13 Bankruptcy

by

Jordan Rocksmith

Seeing bankruptcy lawyers in Seattle, WA, about filing Chapter 13 bankruptcy can feel somewhat intimidating, but there are actually many benefits you will begin to experience when your bankruptcy is filed. Chapter 13 bankruptcy is a great option for those who are struggling financially and do not see a clear end in sight. Here are some of the advantages of filing for Chapter 13 bankruptcy to think about.

Fresh Start

Both Chapter 7 and Chapter 13 bankruptcy give debtors a fresh start. When you file for Chapter 13 bankruptcy, you have the opportunity to make positive financial changes going forward without the crippling debt that you were trying to stay on top of before. Take note that all of your debt payments may not be included in the bankruptcy repayment. Low priority creditors such as credit cards with low balances may not get paid back at all. Rest assured that your unsecured debt will all be wiped out regardless. So you get a fresh start while paying back the majority of what you owe.

Prevent Foreclosure

Seeing that notice of foreclosure on your front door can feel devastating; but with Chapter 13 bankruptcy, there is hope. Filing a Chapter 13 bankruptcy as soon as you get that notice will allow you to put all the late payments on your mortgage loan into your reorganized Chapter 13 bankruptcy payment plan and pay back the arrearages on your mortgage throughout the next 3 to 5 years of your bankruptcy term.

Avoid Repossessions

You can avoid repossession of your property such as vehicles when you file for bankruptcy much in the same way that you can prevent foreclosure of your home. The late payments on your auto loan are applied to your Chapter 13 bankruptcy repayment plan. As long as you are able to make your car payments in full and on time going forward, you will not be at risk for another repossession.

Keep Payments Manageable

It is not in anyones best interest to make your Chapter 13 payments unmanageable. The trustee over your bankruptcy is going to make sure that the reorganized debt payments you are responsible for throughout the term of your bankruptcy are manageable. They will do this by looking over your monthly expenses, putting the creditors in order of priority, and determining how much of each payment will be paid to which creditor.

Lien Stripping

Being able to do a lien strip is another reason to file for Chapter 13 bankruptcy. Lien stripping involves getting rid of your second, third, and higher mortgages. The bankruptcy court still needs to approve your lien strip but if the value of your home is less than what you owe on your first mortgage on the date that your bankruptcy is filed, you have a higher chance of it getting approved. The second and higher mortgages are discharged in your bankruptcy at the end of your bankruptcy term.

Credit Report Impacts

One of the reasons that many people put off filing for bankruptcy is the impacts on their credit report. A Chapter 7 bankruptcy stays on your credit report for 10 years, while a Chapter 13 bankruptcy stays on your credit for just seven years. While you will still be able to apply for credit during this time, and you should be working on rebuilding your credit again as soon as your bankruptcy is filed, you will have your bankruptcy removed from your credit report 3 years quicker than you would with a Chapter 7 filing.

There are many reasons to talk to bankruptcy lawyers in Seattle, WA, about filing for bankruptcy. Whether you file for Chapter 7 or Chapter 13, either can be a smart move for you financially.

Travis A. Gagnier, Attorney at Law has handled over 7,000 cases and 400-500 adversary proceedings. While bankruptcy is our main area of practice, we also help our clients set up payment and reorganization plans. We do not charge an attorney fee until your plan is filed. Visit our page on choosetherightchapter.com/ to see our page!

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Talk to a Bankruptcy Lawyer about Filing Chapter 13 Bankruptcy}