Chapter 13 Bankruptcy is a government sponsored debt consolidation plan with several favorable twists for debtors.
Now let’s assume you owed 100k in credit card debt. If you pay 30k into the plan, you will pay creditors approximately (assumes no other variables) 30 cents on the dollar. Not bad. The balance of the 70k would be discharged, tax free, forever.
Second, the advantage of a Chapter 13 Bankruptcy then is debtors often pay much less than the full debt they owe creditors; and they do so tax free.
Third, unlike traditional debt consolidation where one creditor can poop in the punch bowl and ruin the entire plan by not agreeing to the plan, and they garnish our wages, in a Chapter 13 Bankruptcy ALL creditors must comply with the terms of the plan. Plus, the automatic stay prevents most creditors from garnishing your wages or freezing your bank accounts. In other words, there is peace in the valley whereas in traditional debt consolidation creditors can continue to collect from you regardless of what the repayment plan proposal looks like. Not so in a Chapter 13 Bankruptcy.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, or when you are ready, reach out to Minnesota’s largest bankruptcy website by going now to www.lifebacklaw.com. You will be so glad you did.
