You may feel confused about your options if you are experiencing financial difficulties and you are considering filing for bankruptcy. As you may know, your personal bankruptcy choices include Chapter 7 and Chapter 13. You and other Ohio residents may be able to manage your debt through a Chapter 13 repayment plan. While both of your options have benefits and advantages, you may be interested in learning the positive things about Chapter 13.
According to FindLaw, some of the benefits of Chapter 13 bankruptcy may include the following:
- You can lower your payments and restructure your debt, allowing you to repay your creditors in an affordable way.
- Instead of having a bankruptcy on your credit report for 10 years, as with Chapter 7, Chapter 13 only shows on your record for seven years.
- While repaying your debt under your Chapter 13 plan, you are protected from contact and harassment by your creditors.
- You may avoid losing your home and other significant assets with a Chapter 13 bankruptcy, as opposed to having some of your property liquidated with Chapter 7.
It can help to understand the differences between Chapter 7 and Chapter 13 bankruptcy before you decide which option may be best for your situation. Dealing with insurmountable debt can be overwhelming on your own. Fortunately, personal bankruptcy allows you to address your debt and regain your financial footing. Since taking the steps to file for bankruptcy can be complex, this post is not meant to replace the advice of a lawyer.
