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Why consider a Chapter 13 bankruptcy?

Sometimes, life throws financial curveballs that are difficult to overcome. You've done your best to keep up, but now you are on the verge of losing everything and are receiving frequent calls from creditors. You can't take it anymore. You are ready to move past this point in your life. This is when a bankruptcy filing may be appropriate.

If you are one of the many Pennsylvania residents drowning in debt, even though you make a solid income, you may qualify for a Chapter 13 bankruptcy. What benefits are there to pursuing this debt relief option?

Chapter 13 overview

Chapter 13 bankruptcy, in short, is known as a wager earner's plan. It is for individuals who have income coming in but just need an affordable payment plan in order to pay off their creditors. If a Chapter 13 petition receives court approval, a person will have three to five years to pay off creditors in accordance with the terms set in a repayment schedule. After that three to five years, any remaining balances owed to those creditors may qualify for discharge.


Aside from receiving an affordable payment schedule and the potential for debt discharge, there are a number of benefits in pursuing a Chapter 13 filing. Some include:

  • The ability to stay foreclosure
  • The ability to stop creditors from contacting you
  • The ability to keep your property
  • The ability to protect co-signers from creditors
  • Credit reporting of only 7 years

All of these benefits combined can grant you peace of mind and allow you to take significant steps toward achieving financial freedom.

How do I file?

Filing a Chapter 13 bankruptcy petition is not necessarily hard, but it does take some time to put the necessary documents together. Not only do you need to fill out the required forms, you also need to put together a repayment plan proposal for review. Creditors have the right to accept or reject your proposal, so it can take time to create one that is acceptable to creditors and the court.

With help, it is possible to put together a Chapter 13 filing, get through all the hearings and receive court approval. If that is a successful accomplishment, you will soon be on your way to achieving the fresh financial start you desire.

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