Chapter 13 bankruptcy code that helps qualified small business people or property owners who want to repay their debts, but there are financial difficulties. Often referred to as Section 11 refers to how you usually do something to repay creditors and preserve property and to make payments under the plan.
Chapter 13, may be filed by people who have regular income, and people have no more than $ 250,000 over the unsecured debts of more than $ 750,000 secured debt.
bankruptcy:
• The greatest benefit of Chapter 13 bankruptcy
There are many advantages of filing Chapter 13 is that it allows you to reduce the amount you owe the majority of secured debts. Secure debt are the ones who, if you do not pay, then you need to return the item, whether it be car, house or furniture.
• Another benefit of filing a Chapter 13 bankruptcy is that you can reduce the interest rate that you pay a secured loan. Chapter 13 you only have to pay the debts of the most secure key rate plus 1-3%, depending on your circumstances.
• Perhaps most importantly, Chapter 13 offers individuals the opportunity to save their homes from closing. Individuals can stop the closure process, and may cure delinquent mortgage payments over time.
• Chapter 13 bankruptcy allows people to postpone the secured debts and extend them by section 13 plan for life. In this way can reduce the payments.
• Chapter 13 also includes a special provision that protects third parties who are liable with the debtor on "consumer debts." This provision may protect co-signatories.
• Chapter 13, will act as a consolidation loan, during which the person makes the payments provided to the court appointed trustee who then distributes payments to creditors. People do not have direct contact with creditors over by his safety.
• You may be able to carry on their second mortgage under section 13. On the basis of your home and the amount you owe your first mortgage amount, it may be possible to meet your second mortgage in this case.
• People can keep your car, even if they are behind on payments. Filing Chapter 13 helps to keep the car, even if you are significantly behind on car payments.
• It also can help suppress it in order to avoid wage garnishments.
• You can file Chapter 13 immediately after the Chapter 7 in order to pay outstanding debts.
Plan your monthly payment amount is based on the amount you can pay by paying the cost of living is required. End of the 36-month period, you will be discharged from all dischargeable unsecured debts, regardless of how your creditors.
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