As a Chapter 13 bankruptcy lawyer who has helped thousands of people, I know there are a lot of myths and misconceptions around bankruptcy. Many folks assume it will leave them in worse financial shape than before they filed. Or they believe that filing for bankruptcy means they somehow failed. In reality, bankruptcy is nothing to be ashamed of. It has helped millions of Americans get out of crushing debt they would never have been able to get out of on their own, and it can help you too.
If you’re struggling with debt, bankruptcy offers countless benefits. Some that will positively affect your life immediately after you file, and others that will serve you well into the future. There are different types of bankruptcy you can file for, each with its own rules and benefits. Here are just a few of the benefits that come with filing a Chapter 13.
1. Your debt is consolidated into one affordable monthly payment.
Chapter 13 bankruptcy is a debt reorganization plan. This means that your debts and past-due payments are lumped into a repayment plan. You will make only one affordable monthly payment over a period of 3-5 years.
The enormous benefit of this is that it simplifies your financial life. Rather than worrying about countless monthly bills like credit cards, medical bills, and car payments, you will make one payment to a Chapter 13 Trustee who will then make payments to your creditors. Once you complete the repayment plan, the remainder of the debt is discharged.
2. You can keep your property.
Regardless of how far behind you are on your mortgage or car payments, filing for a Chapter 13 bankruptcy will stop the foreclosure or repossession. Then, once your bankruptcy payments are complete, your car will be completely paid off and your mortgage considered current.
3. You open up more cash flow.
If you’re in major debt, a big problem can be lack of cash flow to meet your basic needs. The more money that has to go towards meeting minimum credit card or car payments, the less money you have to buy necessities like groceries or gas to get to work.
When you file Chapter 13 bankruptcy, your lawyer will design a payment plan in which you pay a reduced amount of money on your debt, freeing up cash for those necessary weekly and monthly purchases.
4. You can build your credit score back stronger than ever.
One of the biggest concerns debtors have about bankruptcy is the impact it will have on their credit score. Typically, Chapter 13 bankruptcies stay on a person’s credit report for seven years. However, if you are filing for bankruptcy your credit score is probably not very good to begin with.
Plus, once your bankruptcy is complete, you can take immediate steps to rebuild your credit score to the rating you want it to be. Programs like our 7 Steps to a 720 — which is free for our clients — teach you exactly how to make it happen.
5. You get the fresh start you deserve.
Maybe the most important benefit of a Chapter 13 bankruptcy is its ability to restore a sense of hope and possibility for the future. It can give debtors peace of mind in knowing that they have a plan to take control of their debts and finally achieve the clean financial slate they deserve.
Talk to a Chapter 13 bankruptcy lawyer Memphis trusts for FREE.
As you can see, bankruptcy comes with many benefits. In fact, there are too many to list here. If you’re struggling with debt you can’t pay, call (901) 327-2100 or contact us online today. The consultation is absolutely FREE. We will answer every question you have and make a plan that works for your unique situation.
The real purpose of what we do is to give people the chance to remove debt and debt-related stress so they can live a better life. Don’t wait; a brighter financial future is just a phone call away.