There are many different ways to file for bankruptcy. Options vary for individuals and corporations, and there are advantages to each. Depending on your situation, there is an option that will fit you best. It is important to know what the advantages are to each one so that you can make the best decision.
The Advantages of Chapter 13
In short, Chapter 13 is highly beneficial for people who have a steady source of income. The best thing about Chapter 13 is that it saves homes from foreclosure. Typically, Chapter 13 filers negotiate an agreement for how to pay their remaining debts based on their income and assets.
Another advantage is lowering the payments that a debtor must make on debts by extending the period of time over which they pay them off. Many debts can be restructured to last the length of the Chapter 13 decree, which will significantly reduce the monthly payment.
Chapter 13 can also act as a consolidation of loans, and in addition can protect co-signers from liability.