What are the advantages of filing Chapter 13 Bankruptcy?

Filing Chapter 13 Bankruptcy in California can offer important advantages to people struggling to make payments due to mounting debt. Chapter 13 Bankruptcy is a form of reorganization that enables debtors to make a payment plan to creditors in order to become current on their debts and ultimately become debt-free. One of the main advantages of filing Chapter 13 Bankruptcy is that it stops creditors from aggressive collections activity. Once a debtor has filed for bankruptcy, all collection activity, such as garnishments, collection letters, and phone calls, must stop. Chapter 13 Bankruptcy also allows debtors to keep their property and assets. Even if the creditor has a lien on the property, the debtor can keep it. Chapter 13 Bankruptcy also offers protection from foreclosure. The Bankruptcy Code provides that a foreclosure cannot proceed while the debtor is in Chapter 13 Bankruptcy. This gives the debtor extra time to make payments and potentially save their home from foreclosure. Chapter 13 Bankruptcy also offers debtors the ability to restructure their debts. This means that a debtor can potentially lower the monthly payments and reduce the total amount of debt owed. Finally, if the debtor follows the Chapter 13 plan, all remaining eligible unsecured debt such as credit card and medical debts can be discharged at the end of the plan.

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What are the advantages of filing Chapter 13 Bankruptcy?

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