Reasons why Chapter 13 is the better option for bankruptcy
If you are leaning towards filing for bankruptcy, Chapter 13 will more than likely be the better option for you in New York. Chapter 13 has a lot of benefits that Chapter 7 does not have. It is also a form of bankruptcy that allows you to reorganize your debt, save your home from foreclosure, pay certain debts outside of the filing and file if you make too much money to file for Chapter 7.
After you file for Chapter 13, you can leave it, unlike Chapter 7. Most people leave Chapter 13 if they incur more debt due to loss of a job or an illness. The people leave Chapter 13 in order to refile and include the new debt.
Chapter 13 allows you to keep everything when you file for bankruptcy, unlike Chapter 7. This means you can pay down some of your debt, while keeping your property, including real estate.
You control your life during Chapter 13 completely. The case can be dismissed freely and the repayment plan can be changed based on any changes in your income.
Payments made on a monthly basis to creditors can be as low as $150 in Chapter 13 bankruptcy filing. Repayments made to creditors are done based on the income of the person who filed and his or her assets.
When filing Chapter 13, you can pay off any government tax debts over the span of three to five years without any interest being added onto the total owed. Because of this, you could find yourself saving thousands of dollars while in Chapter 13.
If you file for Chapter 7 bankruptcy you cannot do so again for another 8 years after the date of filing. If you file Chapter 13, you can file again when necessary.
Chapter 13 is commonly used by people to catch up on making car loan, student loan or mortgage payments.
Visit our site today to learn more about Chapter 13 bankruptcy in Long Island, New York, and how to file.