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Filing for bankruptcy in Raleigh, NC can be challenging. It can affect your future credit and your reputation.
When your debts have overtaken your income, you need to re-assess your financial situation. Research on your bankruptcy options and consult with a credible attorney. Doing this will help you develop a concrete plan on how to pay your debts, and eventually improve your long-term quality of life considerably.
The Case of Chapter 13 Bankruptcy
The Chapter 13 bankruptcy, also called the “Wage Earner Plan,” caters to individuals with a source of income not high enough to pay their outstanding debts. Individuals who did not pass the income test for Chapter 7 can apply for Chapter 13 bankruptcy.
Here are some reasons why filing for Chapter 13 bankruptcy with your lawyer in Raleigh, NC might be the best option.
• SAFEGUARD YOUR ASSETS
Under Chapter 7 bankruptcy, creditors have the right to sell your assets in exchange for debt payment. There are exemptions under Chapter 7 that may allow you to keep certain properties. However, if a property is non-exempt, then a representative can sell it as debt payment.
Chapter 13 bankruptcy, on the other hand, allows you to reorganize your debt. So you can put your mind at ease without having assets listed as non-exempt.
• PAY DEBTS WITH LOWER INTEREST RATES
The bulk of your debt under Chapter 13 bankruptcy is included in a repayment plan. This plan entails lower interest rates compared to the normal plan. In addition, the payment plan will only last for three to five years.
• IT REFLECTS ON YOUR CREDIT RECORD SHORTER THAN CHAPTER 7
Any type of bankruptcy will affect your credit record negatively. However, Chapter 13 sets a better predicament for you. Chapter 13 bankruptcy will reflect on your credit record for up to seven years, unlike Chapter 7 which remains on your record for up to 10 years.
• BE CONSIDERED BY FUTURE LENDERS
In Chapter 13 bankruptcy, you are reorganizing your debt and not canceling it. Any bankruptcy can bring down your credit score; but since you are still paying off debts under Chapter 13, future lenders can still consider dealing with you.
• MORE TIME TO REBUILD YOUR CREDIT
You can only apply for Chapter 7 once every six years, but you can always apply for Chapter 13 if there is a dire need. However, be sure to avoid filing for Chapter 13 repeatedly as each filing appears on your credit record.
Get Full-Time Bankruptcy Assistance
If you have decided that filing for Chapter 13 bankruptcy in Raleigh is your best option, do not hesitate to call Weik Law Office.
For 20 years, we at Weik Law Office have helped clients resolve their bankruptcy issues, making sure that they receive the assistance they deserve in this trying time. Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our professionals.