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There are several advantages to filing for a Chapter 13 bankruptcy rather than a Chapter 7. One of the main advantages is for those individuals whose property is close to foreclosure. Filing for a Chapter 13 bankruptcy helps save the property from being foreclosed, however, mortgage payments must still be paid.
Another significant advantage to filing for a Chapter 13 is that the petitioner is allowed to reschedule all of their secured debts, except for the mortgage payments for their residence. The rescheduling may allow for the debts to have lower monthly payments. Lastly, through a Chapter 13 filing, the debtor’s loans are consolidated and an overall payment place is created. The payment plan is designed so that the debtor may pay their liabilities while being able to live within their means.
Overall it is very important to speak a skilled attorney who knows and understands the bankruptcy process, so that they may determine which type of petition would be best for your debt.