What are the Biggest Benefits of Chapter 13 Bankruptcy Tampa?

When most people think of bankruptcy, they’re usually thinking about Chapter 7 bankruptcy. But that’s not the only option. Chapter 13 bankruptcy in Tampa is also a powerful tool that can be used to improve your financial situation. If you’ve been told you do not qualify for Chapter 7 bankruptcy or you prefer to take a different route than Chapter 7 because of your assets, Chapter 13 is a viable and beneficial alternative.

What are the benefits of filing for Chapter 13 in Tampa?

Chapter 13 is a Reorganization of Debt

The greatest benefit of Chapter 13 is the essence of it. You use it to reorganize your debt so it’s more affordable. Chapter 13 is less about discharging your debt and more about getting a handle on it.

Chapter 13 Provides Asset Protection

One of the main reasons people choose Chapter 13 bankruptcy in Tampa is because it allows them to retain ownership of their assets. This means you don’t need to worry about losing your home or your vehicle or anything else of value you own when you file. Chapter 7 provides some asset protection, but it’s not as broad as what you receive in Chapter 13. If assets are a concern, it’s a good idea to explore your Chapter 13 options.

Chapter 13 Provides Gradual Changes

The Chapter 7 bankruptcy is typically completed in just a few months. Chapter 13, on the other hand, takes three to five years. Some people might view that extended period of time as a flaw, but it’s actually beneficial for many people.

Over time, you’re able to build better financial habits and take gradual control of your financial situation. The years you’re working with the bankruptcy court on a Chapter 13 case ensures you are not thrown immediately back into the world of managing your financial situation.