bankruptcy, chapter 7 vs 13

Benefits of Going For Chapter 13 Bankruptcy

We have discussed different bankruptcies in details over the past couple of articles, and it is something that keeps on repeating itself because even on its own, you are looking at a massive topic that you will have to go through if you are thinking about.

However, an important part to know is that not all bankruptcy types are the same. Some are going to apply to you while others might not and in such situations, it would be ideal if you are looking at the right one. For now, we want to focus on chapter 13 bankruptcy and the benefits it brings.

You can check chapter 13 and car repossession and how it works to get a better idea, too. So, let’s not waste time and have a look.

It Can Stop The Repossession of Your Car

Whenever you are filing for chapter 13 bankruptcy, most creditors will have to stop any collection efforts against you as an order that is called “automatic stay.” In case you have already filed for the bankruptcy, the car lender cannot repossess your car, and therefore, you get to keep the car to yourself.

Allows For Proper Payments

Another benefit of this bankruptcy is that it allows for proper payment times which a lot of people cannot really focus on. The benefit here is that under this bankruptcy, the lenders will not be forcing you to pay more or pay before the time is due. So, you will be able to make monthly payments based on the amount and time that will be set legally.

These are some of the most common benefits of this bankruptcy type and are the main reason why people prefer this, at the same time.

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