While there may be various options with which to seek relief from the trials of debt, the best path forward may vary in each situation. In some cases, Chapter 13 bankruptcy could be just the tool with which to seek much needed financial relief. Evaluating the possible benefits of reorganization via Chapter 13 bankruptcy could help individuals in Maryland who face debt concerns determine if this might be a viable path.
According to experts, there could be various benefits involved with seeking relief from debts via Chapter 13 bankruptcy, some of which could include:
- No liquidation: Chapter 13 bankruptcy does not call for the liquidation of assets and as such, one may retain possession of all belongings through every step of the process.
- Protecting co-signers: Another potential benefit could involve the notion that any co-signers on debts may be protected from creditor interaction during the bankruptcy process.
- Financial benefits: After the process begins, debts may be frozen and may no longer accrue interest. As such, payments in a reorganization plan will go directly to debt balances.
Experts also state that individuals may retain the right to sell their property during any stage of the process, which might not be the case in some of the alternative paths.
While addressing the benefits of seeking debt relief via Chapter 13 bankruptcy can be helpful, this can still be a major life decision. Individuals in Maryland who remain uncertain of the best path to take might find it helpful to consider speaking with a bankruptcy attorney for guidance in addressing their situations. An attorney can work with a client in preparing to make informed choices about his or her future and assist in creating a strategy with which to seek relief from the burdens of debt.