Bankruptcy is one of the most misunderstood legal protections available to consumers and businesses. The word “bankruptcy” is often tossed around as a synonym for being “broke” despite the fact that many people who file for bankruptcy actually do have a dependable income. Bad things can and do happen to good people, and they deserve a chance to make things right.
That’s where Chapter 13 bankruptcy comes in to play. As opposed to Chapter 7, which results in liquidation of non-exempt assets to pay back creditors and achieve the discharge of remaining debts, Chapter 13 provides an opportunity to maintain assets such as a home while restructuring finances to ensure sustainability.
Chapter 13 Is A Great Way To Save Your Home From Foreclosure
If you are behind on your payments but want to find a way to keep your home, Chapter 13 may be the answer. By restructuring your debts, you may be able to create a financial situation that allows you to get current on your mortgage payments and stay on track with future payments.
Who Qualifies For Chapter 13?
In order to qualify for Chapter 13, a person or family must have dependable income. Why? Because Chapter 13 consists of a three to five-year payment plan. Remaining debts are discharged once the terms of the payment plan have been satisfied.
So, back to our original point, filing for bankruptcy does not equate to being “broke”. Chapter 13 is about gaining control over debt, achieving a fresh start, and moving forward in life. Contact us today to discuss your bankruptcy options with an experienced lawyer.