Many people who are suffering with overwhelming debts have made the life changing decision to file for bankruptcy in Tampa. Although the process may seem scary, there is actually a lot to be gained in bankruptcy, especially Chapter 13 cases.
Relief and Rebounding
Chapter 13 is a type of personal bankruptcy that allows debtors to reorganize their finances and satisfy debts to creditors. Also called a wage earners plan, Chapter 13 consolidates debts into a single payment that is spaced out over the course of three to five years; making it more affordable to the debtor. The repayment plan is based on the debtors income level, assets and total debt balance. At the end of the repayment plan period any remaining balance on eligible debts is eliminated and the case is discharged.
Not only does Chapter 13 allow the debtor to find relief from their debts, it also allows for protection of secured debt assets like a house or car. Foreclosures and repossessions can easily be prevented in a Chapter 13 bankruptcy, giving the debtor time to get caught up on payments without the worry of losing property.
Further, Chapter 13 bankruptcy helps position debtors for a better chance at future credit. While filing for bankruptcy doesn’t damage credit, some creditors are more hesitant to lend to post-bankruptcy consumers. However, those who have successfully completed a Chapter 13 repayment plan are more likely to be given a chance at future credit much sooner than those without resolved debt accounts.