Bankruptcy plans give consumers a second chance and they are available in a variety of methods that give consumers more time to pay off their debts. The two most popular opportunities are chapters 7 and 13, for which the consumers file through local bankruptcy services.
How Does Chapter 13 Help?
Chapter 13 offers the consumers a repayment plan for all their debts. The payments are divided based on the duration of the plan. The plans range between three and five years.
The consumers submit payments each month, which are divided based on the schedule in which the debts are paid, allowing the consumer to pay off several debts at one time.
Chapter 13 also gives consumers an automatic stay: this feature of the chapter prevents foreclosure and repossession by lenders. It helps them remain in their home throughout their case and drive their car if it is financed, thus eliminating the stress and worry of adverse legal action.
What Are the Benefits of Chapter 7?
The bankruptcy services that offers chapter 7 help the consumer pay off debts by selling assets and properties. The funds generated from these transactions are distributed to their creditors allowing them to settle their debts within a six month period.
The automatic stay achieved with the chapter lasts as long as the claim. If the consumer doesn’t bring their accounts to current, their lenders could initiate legal action after the case is closed. This includes for foreclosure and repossession.
Are There Other Opportunities?
Additional opportunities include loan modifications and settlements. Their attorney could discuss these options with their creditors. If a mortgage loan reflects predatory lending practices, the attorney could file a motion against the lender, helping the consumer avoid legal action and achieve a more affordable mortgage.
Bankruptcy presents consumers with a viable opportunity to settle their debts and these options could divide their payments up over a longer period of time. For the consumer, this could become the difference between losing their home and remaining in it for the duration of their case. Consumers who need bankruptcy services should contact us today.
