Many times, people come into Colorado Debt Help and say, “I want to do a chapter 7 bankruptcy, not a chapter 13 bankruptcy.” This comment is usually based on people with friends and family instead of meeting with a Broomfield bankruptcy attorney.

Friends and family can be very supportive during this time. But they are not when it comes to what is best for your financial future. Your situation is unique, and your debt situation is different than other person’s bankruptcy experience.

So let’s take a look at the top four advantages of a chapter 13 bankruptcy:

Saving a Home from Foreclosure

chapter 13 bankruptcy

Chapter 13 bankruptcy is the only way to save a home from foreclosure; plus, it’s the best way!

One of the advantages of a chapter 13 is the ability to save your home from foreclosure. Chapter 13 bankruptcy debtors can repay missed mortgage payments.  The arrearages are broken down into small amounts and repaid back over three to five years.  It’s an affordable way to stop your foreclosure and save your home.

Get a Mortgage Modification

Another benefit of chapter 13 bankruptcy is you can modify or remove a second mortgage. The bankruptcy code does not allow first mortgages on a debtor’s primary residence to be modified. However, second and third mortgages may be modified through a process known as lien stripping depending on the value of your home.

Reduce Car Payments

Debtors who find themselves underwater on a car loan have the option of lowering their car payments. This option applies if you’ve purchased your car in the last 910 days.  You can also lower your interest rate!

Help With the IRS

Chapter 13 bankruptcy helps with tax debt. You can discharge some tax debt, similar to a credit card.  However, other taxes must be repaid.  A chapter 13 plan allows you to repay your tax debt without any future penalties or interest.

The Bottom Line

Chapter 13 bankruptcy has many advantages.  But to know whether these advantages will help you, it’s important to meet with a Broomfield bankruptcy attorney for a free consultation. Whether it is filing chapter 13, or some other debt relief option like debt settlement, Colorado Debt Help will get out of debt! We offer solutions and peace of mind.

Call (720) 526-9509 now to schedule your FREE consultation or schedule your appointment online. We offer phone, in-person, and Zoom appointments.Our office is conveniently located at 390 Interlocken Crescent, Suite 350, Broomfield, CO, 80021.