We all know that bankruptcy helps people struggling with a severe financial burden, but did you know that there are multiple forms of bankruptcy? Each option benefits the applicant in different ways and can result in a unique outcome in the future. If you are considering Chapter 13 bankruptcy, you should know what to expect from your application.
Once you are sure you are eligible to file for Chapter 13 bankruptcy, you can begin to see your application’s added benefits. These benefits include:
Cut interest rate with vehicle loans
In Chapter 13 bankruptcy, the applicant can restructure their payments on most of their debts, like credit card debt, medical debt, mortgages, and leases. Part of this restructuring includes reduced interest rates on loans, which can help reduce the payments you have on your loans.
Get more time to pay off debt
This bankruptcy option also creates new payment schedules for applicants, usually from a three-year plan, up to a five-year plan. If your current payment plan has less time on it, bankruptcy may be able to extend the time you have to pay off what you owe, which may also reduce the amount you pay monthly.
Save a ton of money
The new payment plan may result in smaller payments for certain loans or debts, and reduced interest rates also result in less money to pay back. Once your payment plan through bankruptcy is done, the government may discharge any remaining debts as well.
See how Chapter 13 bankruptcy can help you
If you are looking to get ahead on your debt and manage your payments, you may be surprised just how beneficial Chapter 13 bankruptcy may be for you. If you have a regular and reliable income to make payments with, consult with a bankruptcy attorney to see if Chapter 13 if the right fit for your needs.