Getting into debt is not something that anyone plans. However, sometimes, bad things do happen to good people. Bad things like debt and it may not be their fault. If you are heading to liabilities or are already there, one of your most significant concerns is whether you can keep your home and car. There is no part of bankruptcy where the debtor is prohibited from filing chapter 13. However, they qualify even to file chapter 7. When the Congress enacted the bankruptcy abuse prevention and consumer prevention act of 2005 (BAPCPA), they allowed debtors who could pay their portion of the debts to file chapter 13 instead of chapter 7 as a policy that provides for amendments of repayment deals. So the big question is, how can one use those to their advantage and make sure that they are debt free?
How to delay reposition with chapter 7 bankruptcy
The problem most people experience when using chapter 7 is that it only delays foreclosure, it does not stop it permanently. This is the reason why most people prefer to use chapter 13 instead. Chapter 7 is excellent because it will help you get rid of other debts like credit card bills, judgments, and medical bills among others. This, therefore, frees up some money for you to start making some payments for your house.
It is also great because it can eliminate the debt owed if you have a second or a third mortgage. What this means for you that the owners of the second or third mortgage will not be able to sue you for the debt or foreclose on your home.
It is a great place to start if you want to delay the foreclosure proceedings for a couple of months as you sort things out. If you plan to give up in the future, this chapter will give you adequate time to find a new place to live. You can watch videos about the bankruptcy process at https://www.youtube.com/watch?v=jobpaNCY-LU
How chapter 13 helps you
Well, if you have equity in your home and are hoping to keep it permanently, chapter 13 is the best. It allows you the advantage over liquidation under chapter 7 and allows you to save your home. When you file it, you are sure that you will be able to completely stop a foreclosure proceeding and cure delinquent mortgage payments over time. You do not have to give up on your property. It has a repayment plan that allows you to make up mortgage arrears. It also allows you to reduce the amount of mortgage debt you have to pay because you can quickly strip off second and third mortgages or any equity lines of credit in some circumstances. This will serve to reduce your home loan and general debts significantly.
Your lender would not foreclose on you if you missed payments even through the prepayment plan. You get an automatic stay, so your lender has to go to other methods of collection. If you make timely payments through your repayment plan, this will stay. These two chapters will work the same way for your car repossession.