In addition to chapter 7 bankruptcy, that can erase old debts and give you a chance to make a new start, bankruptcy law includes chapter 13, which has different benefits from those under chapter 7. One of the key advantages under this chapter is the ability to immediately stop the foreclosure process. When an individual is behind on house payments, chapter 13 can help them catch up using a structured debt-repayment plan.
Interest Debt
The chapter 13 process has another major advantage: you may be able to avoid paying interests on federal and state taxes. Click here to learn more about how a legal expert can help you with chapter 13. When you work with an experienced and skilled bankruptcy attorney, you will have a better chance of developing a repayment plan that will handle your debts over a period of three to five years.
When a plan is structured and accepted, you’ll make payments directly to a bankruptcy trustee, paying only what you can afford. Chapter 13 can also be helpful for those who cosigned with you. If these advantages sound as though they could help you in your financial situation, you’d be wise to talk with an attorney who understands bankruptcy law in Polk County, OR.
Chapter 11, Chapter 12
There are two other categories under the bankruptcy law banner: chapter 11 and chapter 12. While most people aren’t familiar with chapter 12, they have probably heard about chapter 11. This is the category used by corporations and partnerships needing to reorganize debts. The goal is to structure a plan that puts payments more in line with business income.
Mortgage debt is sometimes restructured under chapter 11 to make payments smaller. This chapter may also give the business time to reorganize without making payments for several months. Chapter 12 is generally used to restructure farm debt. Click here for more information.
