You may feel as if filing bankruptcy is a terrible thing to do, but you should understand there is a very good reason why it is an option. Sometimes, it is the best way to fix your finances. You have options in the type of bankruptcy you file. Many people choose to file Chapter 13 because of the many benefits that it offers.
The U.S. Courts explains Chapter 13 allows you to pay back your debts using a plan. While you may not pay back everything you owe, it does give you a chance to make things right, which is wonderful if you are not happy about filing because you want to honor your promise to pay creditors. This gives you the chance to do what you can while also ensuring that you can still afford your daily living expenses.
Chapter 13 has other benefits as well. One of the biggest benefits is that you can often keep assets you used to secure debts, such as your home and your vehicle. You can roll those payments into your plan and not lose them. You also get the chance to spread out payments for your debts. This can lower monthly payments and help make them more affordable. If your concern is over a co-signer and how filing bankruptcy may affect him or her, then Chapter 13 helps with that, too. It has a provision that can offer protection for a co-signer.
Chapter 13 is a different type of bankruptcy. It is not what most people think about when they consider filing. However, it is often the best solution for those who do not want to ignore their debts, lose assets or harm a co-signer. This information is for education and is not legal advice.