The benefits of Chapter 13 bankruptcy

April Randle • April 16, 2020

The benefits of Chapter 13 bankruptcy

Thanks to the opportunity to discharge debt and start fresh, most people prefer Chapter 7 over Chapter 13 bankruptcy. However, there are people who don’t qualify for Chapter 7, so they have no choice but to consider other avenues for managing their debt.


Once you understand the benefits of Chapter 13 bankruptcy, you may come to find that it’s the right choice for you. Here’s what you can expect:


  • More time to make payments: Although you don’t discharge debt like you do in Chapter 7, Chapter 13 bankruptcy buys you more time to make payments through your repayment plan. And with the ability to stretch out your debt payments, it can reduce the amount that you owe each month.
  • No risk of losing property: As long as you’re making payments as required by your Chapter 13 bankruptcy repayment plan, you get to keep the property associated with those payments.
  • Less time in your credit report: A Chapter 13 bankruptcy filing will remain on your credit report for seven years. While it’s a long time, it’s three years less than a Chapter 7 filing.
  • Save your home from foreclosure: For many people, this is the primary benefit of either type of bankruptcy filing. Upon filing, the automatic stay will stop foreclosure proceedings. And with Chapter 13 bankruptcy, you have the opportunity to make up delinquent payments over the course of your repayment plan. If you can afford to make your mortgage payments after bankruptcy, you may be able to save your home from foreclosure or avoid selling it.


Even though the benefits of Chapter 13 bankruptcy are different than Chapter 7, they can still have a positive impact on your life. So, don’t look down on bankruptcy if you don’t qualify for Chapter 7. This remains a viable option for many.


If you decide in favor of Chapter 13 bankruptcy, learn more about the process, how to prepare, what to expect along the way and how you can protect your legal rights.


It’s a big decision to file for any type of bankruptcy, but with so many benefits it could be just what you need to repair many of your financial mistakes.

Buying a Home After Bankruptcy

By April Randle • March 5, 2021
Everyone can agree that filing for bankruptcy was never in their life plans and that it can impact future home buying plans, ability to borrow money, and your credit score. However, with proper financial planning and patience. Cleaning up and organizing your credit...

Will you get left with the debt after your ex files for bankruptcy?

By April Randle • March 5, 2021
A big part of the divorce process involves separating your financial circumstances from those of your spouse. It can be a protracted process for the courts to divide your assets and debt in a divorce, and it is common for the courts to create very detailed and...

Avoid These Mistakes In Your Tennessee Chapter 13 Bankruptcy

By April Randle • December 18, 2020
In Tennessee, residents struggle with crippling debt every day. After trying different ways to overcome their debt, many of these people realize that bankruptcy is their best option. A Chapter 13 bankruptcy is a great way to get a handle on your debt and keep some of...

If You File For Bankruptcy, You’re Certainly Not Alone

By April Randle • December 4, 2020
People don’t like to talk about money, especially when they’re facing financial troubles and may need to file for bankruptcy. This is why those who are considering it often feel like they’re alone. They don’t know anyone else who has done this -- or so they think --...

When Divorce Leads To Bankruptcy: Make Strategic Decisions

By April Randle • November 19, 2020
It’s no secret that when money gets tight in a marriage, couples tend to bicker and fight a lot more. It can become a bit of a “chicken or the egg” conundrum, but the end result can often be that couples find themselves filing for both divorce and bankruptcy...

Will You Lose Your Home In Chapter 7 Bankruptcy In Tennessee?

By April Randle • November 9, 2020
When the average person thinks about bankruptcy, they often picture a Chapter 7, even if they are not sure of the differences in Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a specific form of bankruptcy that helps individuals discharge, or wipe out, as much debt...

Dividing An Estate Between Adult Children

By April Randle • November 9, 2020
Some parents in Tennessee who are creating estate plans may wonder whether they should divide their assets equally among their adult children. When making this important decision, there are several factors they should consider. Equal or equitable? First, parents...

You May Be Able To Protect Your Vehicle In Bankruptcy

By April Randle • November 6, 2020
If you’re struggling with the idea of going into a bankruptcy because of the fear that you’ll lose many of the things you owe, set that aside for a moment to learn more about how a bankruptcy can help and how you can keep many of the assets in your possession. With...
Show More
Share by: