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Chapter 13 Foreclosure versus Chapter 7 Foreclosure

Chapter 13 Foreclosure versus Chapter 7 Foreclosure
"""There are numerous types of bankruptcy you can file if you decide to declare bankruptcy for whatever reason. Chapter 7 is by far the most prevalent filing for individuals in the United States.

The majority of individuals who file for bankruptcy choose Chapter 7 because it allows them to virtually eliminate all of their debts and begin a new financial life with a clean slate. Unfortunately, you must satisfy certain financial requirements to qualify for this type of bankruptcy. If you do not meet the financial requirements, you will likely be required to file under Chapter 13, which in actuality is more of a reorganization plan than a debt discharge plan.

However, for some individuals, Chapter 13 is the best option, particularly if they have a substantial amount of assets. Its primary advantage is that it permits you to retain all of your belongings while you are under bankruptcy protection. There are additional advantages as well.

First, while Chapter 13 will not eliminate all of your debts, it can reduce the amount you owe on some of them. For instance, suppose you purchased a brand-new Nissan Sentra for $20,000 in 2009. A year later, however, the car is only worth $13,000 despite the fact that you still owe $18,000 on it. Under Chapter 13, the amount you owe could be reduced to $13,000, the current market value of the vehicle. You could also renegotiate the terms of the payment to make it simpler for you to pay. Because the primary objective of Chapter 13 is to keep you solvent so that you can repay your creditors under the renegotiated terms, this is the case.

But automobiles are simply an example. The truly advantageous aspect of this type of bankruptcy filing is that it allows you to reduce the amount of money you owe on a variety of items whose value has decreased since you purchased them. Therefore, your aggregate debt could be reduced by thousands of dollars.

A further benefit of this type of filing is that it allows you time to make up any delayed payments on a debt. For example, suppose you purchased a number of furniture sets for various rooms in your residence but have fallen behind on several payments. The bankruptcy reorganization can spread the total amount of your past-due payments over the next three to five years, making them much simpler to pay. And Chapter 13 is all about making it simpler to pay your debts while still maintaining your financial solvency.""

" - https://www.affordablecebu.com/

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"Chapter 13 Foreclosure versus Chapter 7 Foreclosure" was written by Mary under the Finance / Wealth category. It has been read 117 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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