When the thought bankruptcy comes in mind it is obvious to hesitate when filling for one as it would decrease the credit score but on the other hand it is good to file bankruptcy when one is over flowing with debt and knows that no matter what he/she wont be able to pay back. It also helps the debtor to plan and action out systematically in repayment which he/she might not have been able to do it before.
Pros forfiling chapter 13 bankruptcy in San Antonio.
- One would get more time for repayment under filing chapter 13 bankruptcy in San Antonio. while it will take longer to pay off the debts and also the trustees would be more flexible in the terms of payment. If one is successful in repaying the amount under Chapter 13 the creditors cannot bind the debtor to repay the amount in full.
- The debtor gets to keep the property under Chapter 13.
- Missed debt payments, repossessions, defaults and law suits would decrease individual credit score and is more complicated to explain when taking loan in future. Therefore, filing Chapter 13 bankruptcy in San Antonio, it is more systematic when considering the future loan.
- The six-year slab do not apply after one pays at least 70% of unsecured debt.
- Chapter 7 in San Antonio can filled once in six years while one can file Chapter 13 repeatedly if one again falls under unseen circumstances.
- Avoid Foreclosure: It helps an individual to pay it on a monthly basis based on monthly budget. The budget is made on the basis of individuals IRS (Internal Revenue Services) standards.
- Filing Chapter 13 bankruptcy in San Antonio also helps the students who are in loan debt. It prevents from the aggressive collection by money lenders.
- The extra cash after payment of necessary stuffs that is food, electricity, medicals, shelter only the entire leftover money goes in repayment of the debt.
- The impact on the credit score is much less on Chapter 13 than of Chapter 7.
- Chapter 13 allows the person for rescheduling the secured debts and extend it over 3 years or 5 years which helps in reducing the payment amount.
- Exempted and non-exempted properties can be retained un Chapter 13
- It also offers the advantage in reduction of interest rates on some particular types of loans\
- Silences the creditors. It aids an individual from creditors hassles
- Removal of 2nd or higher mortgages: Imagine if one can only manage to pay the 1st mortgage. The solution is Lien Stripping. Lien Stripping grants to remove higher mortgage, therefore one will have only 1st mortgage
Conclusion: The above pros would help one in filing Chapter 13 bankruptcy in San Antonio. If one has been dismissed when filling for bankruptcy one should not get disheartened as Under Chapter 13 one is refrained for only 6 months from filling again. And in order to avert from limiting the options in future it is best to at least consult an attorney before filling it.