When it comes to finding relief from your debts there are several options. Although you may be tempted to seek a Chapter 7 filing, there are some additional benefits found in a Chapter 13 filing. Here is what you need to know about discharging debts in Chapter 13:
Easier to qualify – one of the reasons people file for Chapter 13 is simply that they were not eligible for Chapter 7. However, even if you do qualify for Chapter 7 you may still choose to file for Chapter 13. Chapter 13 is can help people with a higher income, but that also may be suffering under large debt burdens.
Includes range of debt types – unlike Chapter 7 bankruptcy, filing for Chapter 13 can help with certain types of debt. Secured debts, such as a mortgage or car loan, can be discharged in Chapter 13 without the risk of losing the asset. Further, tax debts and the occasional student loan debt may be eligible for bankruptcy under a Chapter 13 filing.
Removes future liability – once you have completed your repayment plan, any remaining unpaid portion of your debt is eliminated. In other words, you pay what is specified by the court and the rest is history. Even better is that creditors cannot collect on any debt that was discharged by the court after the completion of your case.
If you are considering filing for bankruptcy, contact a Tampa bankruptcy lawyer to review your debts. You can work towards discharging your debts and get back on track to a healthy financial future.