Benefits of Chapter 13 Bankruptcy
There are numerous benefits to filing chapter 13 bankruptcy. Every situation is different, and there may be positive consequences to filing that you’re not aware of.
One of the most helpful benefits is that, in some cases, a Chapter 13 order can discharge a second mortgage on your home. This is called a “strip off.” Whether you can take advantage of it or not depends on several factors, including the fair market value of your house and how much you owe the first mortgage holder.
If you have student loans or income taxes owed, a Chapter 13 can stop collection enforcement and the accumulation of interest on past-due amounts for tax liabilities, as well as give you protection from your creditors because any payments made to them will be subject to court oversight.
Another benefit of a Chapter 13 is that it protects co-signers on your accounts because co-signers receive the same bankruptcy court protection that you do, even though they are not filing bankruptcy. This is true when only one spouse files bankruptcy and the other spouse, who is a co-signer, is also granted bankruptcy court protection, even though the non-filing spouse did not file bankruptcy.
One of the greatest benefits of a chapter 13 bankruptcy is the peace of mind you will have knowing that all of your financial obligations and creditors are being dealt with in a professional, court supervised manner. To fully understand what benefits may be available for you, it is best to consult with an experienced bankruptcy attorney.
Contact us at 508-655-3013 or through our website at ravosalaw.com to schedule a consult today.