Bankruptcy does not have a very good reputation, which is why most people do not wish to file it. In most cases, bankruptcy is kept as a last resort. However, people fail to realize that they can get relief from their heavy burden of debts if they file at the right time and with the help of the right attorney.
If unpaid bills keep piling up on your coffee table and you barely have any money coming in, perhaps you will benefit from filing for chapter 13 bankruptcy. Speak with a Dutchess County, NY bankruptcy attorney today and explore your options. An attorney can also tell you if your situation qualifies for bankruptcy.
Benefits of filing chapter 13 bankruptcy
- Help with foreclosure.
One of the most stressful things when you are in debt is the foreclosure of your home. When you do not pay your bills on time, the bank may seize your house and ask you to vacate it. They then sell it by conducting an auction. The last thing you want to see is your house being held in an auction.
When you file for Chapter 13 bankruptcy in Dutchess County, NY, you are able to change the repayment plan and break the due bills into much smaller chunks. This allows you more time to repay the loan, and you can avoid foreclosure for a longer time.
- Less damaging to your credit report.
While filing for Chapter 13 bankruptcy in Dutchess County, NY, does hurt your credit report, missing payments back to back, default, repossessions, and lawsuits can do even greater harm. Moreover, bankruptcy is easier to explain to a future lender. It is much more complicated to explain why you did make the payments on time.
- Less upfront cost to file the case.
Filing a legal case in court requires some upfront fees. When you are in debt and looking to file for bankruptcy, paying the court fees is one of the most challenging things you will face. However, Chapter 13 bankruptcy costs less than Chapter 7. Moreover, working with an attorney will allow you to find ways to retain enough money while filing for the case.
- Get new credit.
Repeated missing payments can damage your credit report, which may make taking loans difficult for you. When you file for bankruptcy and modify the loan repayments, you can obtain new lines of credit within one to three years of filing. However, it is noteworthy that the interest rates will be much higher.