A Triplet on “Unspoken” Chapter 13 Advantages
The disadvantages of Chapter 13 while filing for bankruptcy have overshadowed the advantages that it has. But surprisingly there are few advantages that make it a better option for filing bankruptcy like:
1. Preventing the foreclosure of “home sweet home”. When an individual falls behind the amount of “settled” mortgages, the bank demand borrower i.e. the home owner to pay back the complete arrear. If the individual fail to do so the home is foreclosure. Under Chapter 13 filing, the arrear is broken down into equal minimum chunk, to be paid over a court approved period, for the payback thus preventing the foreclosure.
2. The other mortgages than the first one can be modified to let the lender comes under the debtor’s terms of payment after due date of mortgage payment. This modification is known as “lien stripping” and can be done effectively by filing through Chapter 13.
3. Chapter 13 also provides the debtor with the powerful debt repayment plan available in a bankruptcy. The Chapter holds back the accruing interest on dischargeable debts thus letting the debtor to pay the balance only on the day of filing bankruptcy.
Firebaugh & Andrews know these advantages very well and thus when an individual approach them with a bankruptcy filing they discussed with him or her to judge the option that is best. If Chapter 13 is suitable for the debtor then this Westland Michigan Bankruptcy Lawyer assist the debtor to plan a budget and period to payback the debt. They let their clients have, who are filing bankruptcy by Chapter 13, the best financial solutions.

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The main purpose of bankruptcy laws is to give people hopelessly overburdened with debt a financial fresh start. Bankruptcy filings are public records. However, under normal circumstances, no one will know about the bankruptcy. Credit Bureaus will maintain a record of the bankruptcy and it will remain on the credit record for 10 years.

The most common reasons for bankruptcy filings are unemployment, large medical expenses; seriously overextended credit; marital problems, and other large unexpected expenses.

There are two ways a debtor can go bankrupt. The first and most common way is for an individual to file a voluntary petition asking the Court to allow bankruptcy. The second, and rarely used way, is for creditors to ask the Court to make an Order that a person is bankrupt. In this way, a creditor can gain payment, at least in part, for debts a debtor is refusing to pay. In both these cases a Bankruptcy Trustee is required to administer the bankruptcy.

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From the beginning of the history of money, there were people lending money from other people. To state the terminology: When someone lends money that person is called the Debtor. And the person who gives away the money is called the Creditor. The debtor now owes the money he / she borrowed. Now there is a problem here. That is, what happens if the debtor cannot pay back the money to the creditor on time? If we look into the early history, in this kind of situation, in Ancient Greece there was a practice of slavering away the debts. That means, the debtor and his family becomes slaves to the creditor, and do whatever work until the creditor says that his debts are over. And later, in early 1800s’ there was notion called “debtor’s prison”, which means, if you can’t pay back the money, you go to prison that was built specifically for debtors. You can’t come out of prison until your family or friends pay off the money your creditor owns. This might be worse than being a “debt slave”. Because, what if your family or friends can’t or won’t pay your creditor? You might have to be in prison for your entire lifespan. Being a “debt slave”, at least you have the chance to work away your debts.

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