There is some confusion regarding the difference between Chapter 7 and Chapter 13 bankruptcy. This confusion often leads to people wondering which option is right for them. One of the best ways to determine this is by consulting with an attorney with prior experience with a Chapter 13 bankruptcy in Philadelphia. However, the tips here can also be beneficial.
Advantages of Filing Chapter 13 Bankruptcy
Some of the specific benefits offered by this type of bankruptcy is that:
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You only have to pay what you can afford
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Some debts are discharged which means you don’t have to pay them in full
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You can save your home from foreclosure
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You can remove a second or higher mortgage
Paying what You Can Afford
When you file for Chapter 13 bankruptcy in Philadelphia, you only have to make a single payment. This will be given to your bankruptcy trustee. This will cover all the outstanding debts. The payment amount is determined by the budget you create with your attorney. Once it is established, the Bankruptcy Court will approve it. This ensures you only have to pay an amount you can afford.
Discharging Debts
Because you will be discharging your debt, you may not be able to repay all of your debt in the three to five-year time period. As a result, you can have this discharged. This means that the debts are wiped out, giving you a fresh start.
If you are interested in Chapter 13 bankruptcy in Philadelphia, you should contact an attorney. They can help you figure out if this option is right for you.
If you are considering filing bankruptcy, visit The Law Offices of David M. Offen website for more information.
