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Why You Need Chapter 13 Monterey

By Linda Turner


If you get into a financial crisis, do not think you are doomed. The law has given a provision to those who are not able to repay their loans on time. This provision is called Chapter 13. It helps you to apply for a friendly way of clearing your loan. A good example is when you cannot secure a mortgage modification. If your creditor still insists you make the right payments on the agreed dates, seek help. In this case, while searching for bankruptcy solutions through Chapter 13 Monterey residents should know the following benefits.

When you are faced with bankruptcy, do not bow down and allow this claim hang over your neck. All you need to do is to apply for the benefits offered in the law. This means you will repay all the kinds of loans you have been given. This includes child support, student loan, car loan plus mortgage.

When one person is paying the loan, it can be harsh and a heavy burden to bear. However, under this provision, couples can bring together their financial strength and overcome the possibility of getting bankrupt. It is also a time to help a wife or husband who took a loan for an asset which is for the whole family.

In the past, the harsh laws would recommend auctioning the property you have been paying for. This meant you lose the money you paid plus the property. In this case, a person had to start at zero again. However, through this legal provision a person can make installments. This will be deducted from monthly income to help clear the loan.

One more benefit includes the time frame given in this provision. The three to five-year plan helps couples or individuals to make payment without being hurried up. The time is enough for someone to re-organize their financial status and clear their loan. It is also enough time to get out of a financial crisis and regain the economic muscle.

If your house or car is repossessed, it means you will suffer. It means you will have to look for housing or even apply for another mortgage in future. The creditor will also suffer because they will use force or even be forced to auction your assets. This is now not the case. The debtor and the creditor can smile through this provision because they know they will both benefit in the end.

Debt management can be approached from different angles. However, one of the sure ways to address your debt is through Chapter 13. This has become a lasting solution for people who are faced with bankruptcy. It also helps as a refuge when the consumer credit counseling plan fails or other debt management approaches.

The decision to pay the loan through this provision should also be backed up with advice. It is thus crucial to approach the right professionals who will help you out. This means showing you how to prevent a repossession scenario by taking action early enough. This will help you know whether you are also eligible for this provision.




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