What are the advantages of filing Chapter 13 Bankruptcy?

Filing Chapter 13 Bankruptcy in Virginia can provide numerous advantages compared to other forms of bankruptcy. This form of bankruptcy is often referred to as the ‘wage-earner’s bankruptcy’ since it focuses primarily on allowing individuals to regain control of their finances. One of the main benefits of filing Chapter 13 Bankruptcy is that it allows individuals to keep their assets, such as their homes and cars. When filing this type of bankruptcy, individuals can create a payment plan that allows them to make payments over a three to five year period. During this time, creditors cannot pursue collection of the debts and the debtor will have the ability to catch up on their payments. In addition, filing for Chapter 13 Bankruptcy can also stop certain types of collection actions. This includes collection attempts such as wage garnishment or vehicle repossession. This type of bankruptcy can also reduce or eliminate certain types of debt, such as unsecured debt. Finally, filing for this type of bankruptcy can provide individuals with the ability to keep their credit score from falling too far. Although the act of filing for bankruptcy will create a negative impact on credit rating, individuals can still rebuild their credit score if they successfully complete the payment plan. In summary, the main advantages of filing for Chapter 13 Bankruptcy in Virginia include the ability to keep assets, stop certain types of collections, reduce or eliminate certain types of debt, and rebuild credit. Therefore, it’s important for individuals to understand the advantages and disadvantages of filing for this type of bankruptcy before making a decision.

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What are the advantages of filing Chapter 13 Bankruptcy?

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