People who are considering bankruptcy in order to gain a fresh financial start can easily become overwhelmed with the number of options available to them. There are many different bankruptcy Chapters, each with their own advantages and disadvantages. It is important that you apply your individual circumstances to each option so that you can analyze your alternatives.

Chapter 13 bankruptcy is not the most common choice for individuals, but it can be advantageous in certain situations. Being in one of the following positions might mean that Chapter 13 bankruptcy is the best option for you.

When you are not eligible for Chapter 7 bankruptcy

In order to be eligible for Chapter 7 bankruptcy, you must show that your income is sufficiently limited through a means test. If you fail this means test, filing for Chapter 13 is likely to be the best option for you.

When you want to avoid foreclosure

Chapter 13 can be ideal for those who want to avoid foreclosure because it can halt proceedings, and make it possible for delinquent payments to be paid back over time.

When you want to reschedule your debts

If you have debts that cannot be realistically paid off in a short time frame, Chapter 13 bankruptcy can make it possible to spread these payments out. This makes repayments less stressful and more manageable for the debtor.

If you are interested in filing for Chapter 13 bankruptcy, it is important to note that the repayment plan takes long-term commitment and dedication. However, if the plan is followed, it can be possible to gain a financial fresh start.