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Despite all your best efforts, running into financial trouble is sometimes unavoidable. It can be difficult to recover if you were out of work for awhile or unexpected medical bills sent your finances into a tailspin. Fortunately, bankruptcy law provides a variety of tools to help borrowers struggling with debts they can’t pay. If you’re still working and able to pay back some of your debts, filing for Chapter 13 bankruptcy protection might offer much-needed financial relief.

4 Benefits of Filing for Chapter 13 Bankruptcy

1. Keeping Your Assets

bankruptcy lawUnlike a Chapter 7 bankruptcy, filing for Chapter 13 doesn’t require you to liquidate your assets or give the trustee the right to seize your belongings. This can be especially important if you have significant equity in your house, multiple vehicles, or other high-value assets.

2. Paying Back Secured Debts

Chapter 13 bankruptcies are designed to help borrowers who have fallen behind on secured debts like mortgages and car payments. If you can submit a payment plan showing you can pay back the arrears while still keeping up with your regular payments, you can keep the assets.

3. Automatic Stay

Both Chapter 7 and 13 bankruptcy law includes an automatic stay on any and all collections activities, including calls for creditors and lawsuits. Filing for bankruptcy can also stop repossession and wage garnishment, giving you the peace you need.

4. Eliminating Unsecured Debt

In addition to giving you the chance to catch up on your mortgage, a Chapter 13 bankruptcy also allows you to discharge most unsecured debts, like credit cards and medical bills. However, each creditor must be paid back at least as much as they would have received if you’d filed for a Chapter 7.

 

Gilbert P. Kaback, Attorney at Law, is an accomplished legal team with over 20 years of experience providing high-quality service to borrowers throughout Colchester, CT. If you’ve fallen behind on your debts and can’t seem to catch up, they’ll help find the best options for you to get a second chance at life. Visit their website to learn more about their bankruptcy law services. To schedule a consultation, call their offices at (860) 537-0874.

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