As a homeowner, you know that you have a variety of obligations with regard to your finances. For example, you have to make your mortgage payment every month. Along with this, you have tax and insurance obligations.
Unfortunately, there are times when homeowners run into a difficult financial challenge. As a result, it can be difficult to make every payment on time.
If you own a home and are facing a variety of financial difficulties, it may be time to learn more about the benefits of Chapter 13 bankruptcy.
This isn't something you do on a whim, but it could be the right financial decision at the present time.
Here are several reasons why Chapter 13 is often the right decision for homeowners:
- To avoid foreclosure. Did you know that Chapter 13 bankruptcy provides the opportunity to save your home from the foreclosure process? Once you file, you can put an end to the foreclosure proceeding. From there, you can make up back payments through your repayment plan. As long as you continue to make current payments as well, you can save your home.
- Less impact on your credit report. A Chapter 13 filing will remain on your report for seven years. This is in contrast to Chapter 7, which is shown for 10 years. This means that creditors will see your bankruptcy filing for three additional years, thus causing you to deal with this setback for a longer period of time.
- Reschedule secured debt. With the exception of your mortgage, you can reschedule other forms of secured debt, such as a car payment. Doing this can help you lower your payment, thus providing you with more cash to ensure that you don't slip behind on other bills.
It is natural to have a variety of questions associated with Chapter 13 bankruptcy. As you answer these, as you learn more about your situation, you can decide if this is the best way to solve many of your financial concerns.
No homeowner wants to think about a day when one's property could be repossessed. If this is close to happening to you, don't wait any longer to learn more about Chapter 13 bankruptcy. This could be the best financial move you ever make. Not only can it help you save your home, but there are many other benefits as well.