Chapter 13 Bankruptcy
Chapter 13 bankruptcy is essentially an interest free repayment plan for most debts, whereas Chapter 7 bankruptcy is a debt relief maneuver.
Relief From Creditors
Chapter 13 bankruptcy allows consumers to seek temporary relief from creditors while establishing a repayment plan. Typically, you will be asked to commit to paying your creditors over a period of 3 to 5 years.
Consolidating Your Debts
An experienced Chapter 13 bankruptcy attorney can assist you in consolidating your debts and put together a strategy for sucessful debt management. During your debt repayment period, your creditors must abide by the terms of your Chapter 13 bankruptcy plan and cease collection attempts. Any loan co-signers will also be protected under your agreement as long as you hold up your end of the contract by making regular payments to the court. Chapter 13 bankruptcy offers a perfect solution for consumers who have a steady monthly income but need a chance to catch up.
What Financial Obligations Can I Consolidate?
Outstanding debts that may be consolidated include auto loans, credit card debt and past outstanding mortgage payments.