Chapter 13 Bankruptcy offers individuals a number of advantages over liquidation under Chapter 7 Bankruptcy. Perhaps most significantly, Chapter 13 Bankruptcy offers an opportunity to save a home from foreclosure. By filing for bankruptcy protection under this Chapter, homeowners can stop foreclosure proceedings and can cure delinquent mortgage payments over time.
Another advantage of Chapter 13 Bankruptcy is that it allows individuals to re-schedule secured debt (other than a mortgage for their primary residence) and extend payments over the life of their Chapter 13 Bankruptcy Plan.
Chapter 13 Bankruptcy also has a special provision that protects third parties who are liable with the Debtor on "consumer debts." This provision may protect co-signers.
Finally, Chapter 13 Bankruptcy acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 Bankruptcy Trustee who then distributes payments to creditors pursuant to Court Order and a Confirmed Bankruptcy Plan.
To discuss the specifics of a Chapter 13 Bankruptcy Repayment Plan and to see how you can potentially save thousands upon thousands of dollars over time over your present debt re-payment plan, call us to schedule an appointment with the Tovar Law Firm today!
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