For some debtors, Chapter 13 bankruptcy is a better option than Chapter 7. In Chapter 13, a debtor repays a portion of their debts over a period of time (typically 3-5 years) and in exchange they get to keep all their assets. For homeowners and other people with significant assets, this can be a major benefit. But some people worry that when their repayment plan is over, they’ll have to go back to paying back their onerous debt. If you have questions about Chapter 13 bankruptcy, contact a bankruptcy attorney right away.
When Chapter 13 concludes and a person has made all of their payments, non-priority unsecured debt is discharged just as it is in Chapter 7. This means that a debtor no longer is responsible for certain types of debt (medical bills and credit cards, to offer two examples). For someone who has serious medical debt or serious credit card debt, this is fantastic news.
And because a debtor gets to keep all their assets in Chapter 13, they’ll be on strong financial footing when their repayment plan is complete. For a homeowner who faced foreclosure or who had fallen behind on their mortgage payments, they can stay in their home (assuming they have caught up on past-due payments). This means that a person can keep the equity they have built in their home and the family can remain in their house.
At Westbrook Law Group, we understand how difficult it can be to suffer from overwhelming debt. We have helped clients across the St. Charles and Troy, MO areas get the help they need. Whether it is Chapter 7 or Chapter 13, we will find the best option that lets you keep your important assets while getting your debt under control once and for all. For a free consultation with a bankruptcy attorney, contact Westbrook Law Group today.