When most people think of bankruptcy, they think of Chapter 7 bankruptcy that allows for a full discharge of an individual’s debts. However, there are other options. If you don’t qualify for Chapter 7 or if you are looking for a different option, talking to a lawyer about Chapter 13 bankruptcy in Philadelphia can provide you a variety of benefits.
Extend Your Repayment
Chapter 13 bankruptcy does not eliminate your debts entirely. Instead, it can reduce them and the amount of interest you need to pay, creating a payment plan that gives you more time to pay things off. You will often be able to make smaller payments over a longer period of time with reduced interest so you can save money and get your debt paid down. You may also be able to surrender items you owe money on to eliminate that aspect of your debt.
Increased Chances of Refiling
One of the issues many people experience when it comes to filing for bankruptcy is the inability to file again for at least six years. If you suffer from another financial disaster, you could find yourself in serious trouble if you have filed for Chapter 7 bankruptcy. The good news is when you file for Chapter 13 bankruptcy in Philadelphia, you are able to file repeatedly. While each instance will appear on your credit report and have a negative impact on your credit, the option is there if you need it.
Start Rebuilding Your Credit
Chapter 13 bankruptcy in Philadelphia allows you to start rebuilding your credit faster than you could with Chapter 7. If you file for Chapter 7, you may find yourself unable to get a new credit card, secure a loan or get a home mortgage. With Chapter 13, on the other hand, you may pay higher interest rates, but you will still be able to obtain lines of credit, either with credit cards or loans, so you can begin restoring your credit much faster.
Have you been thinking about filing for Chapter 13 bankruptcy in Philadelphia? Visit the Law Offices of David M. Offen for more information.
