What Are The Advantages Of Filing Chapter 13 Bankruptcy?
Are there still advantages to filing for chapter 13 bankruptcy? Yes. Chapter 13 is still an excellent solution for homeowners facing foreclosure. Filing for chapter 13 bankruptcy protection can stop foreclosure and affords homeowners the opportunity to catch up on mortgage arrearages over time rather than struggling to catch up on past due amounts immediately as some lenders require. Arrearages are broken up and paid out over a 3-5 year span through a court approved repayment plan.
The practical effect of this is that debtors can resume making their normal monthly mortgage payments rather than worrying about paying down significant past due amounts each month. Chapter 13 debtors also receive the protection of the automatic stay which is triggered the instant their case is filed; any pending foreclosure actions will be stopped in their tracks.
