One of the debt relief options available to those struggling with missed payments is Chapter 13 bankruptcy. Although not typically thought of as the better of the two bankruptcy options, many people find that they are better off than in Chapter 7. Here is why:
Eligibility— qualifying for Chapter 13 is easier than a Chapter 7 case, which is dependent on you meeting strict income requirements. The only exclusions to filing for Chapter 13 are carrying unsecured debts more than $360,475 and secured debts exceeding $1,081,400.
Flexibility — not all debts are eligible for bankruptcy, especially Chapter 7. Even debts that are eligible for Chapter 7 may be better managed in Chapter 13, like a secured mortgage debt. If you intend to keep your property, filing for Chapter 13 can provide more guaranteed protection of your assets while working to resolve your debts.
Affordability — the portion of your debts that you are required to repay in Chapter 13 is spread out over a period of up to five years. This allows for the monthly payment to be affordable to your current income level, while also lowering what you would have been paying outside of bankruptcy.
If you are considering filing for Chapter 13, only a Tampa bankruptcy lawyer can help you determine if it is right for your financial situation. Always consult a professional when seeking debt relief help.