If you have decided to file for bankruptcy, you may be considering reorganization under Chapter 13. This plan involves the repayment of your debts rather than the liquidation of your assets.

Here are some upsides to a Chapter 13 filing.

You make payments based on your financial ability

The main feature of Chapter 13 is an affordable payment plan through which you can resolve most of your debts. Your trustee will work with you to create a plan that you can tailor to your financial situation.

You pay your debts out of disposable income after paying for necessities such as shelter, food and medical care. You cannot resolve certain debts through bankruptcy, so you will continue to make payments on your student loan as well as obligations such as alimony and child support.

Your monthly payment continues for three to five years, and filing for personal bankruptcy protection generates an automatic stay. This means you will no longer have to endure creditor harassment, the possibility of wage garnishment or the potential foreclosure on your home or repossession of your vehicle.

You do not have to start over

Chapter 13 will enable you to keep your home, your car and other possessions dear to you while completing the requirements of your bankruptcy.

You will lose your credit cards, but bankruptcy provides the opportunity to begin the credit rebuilding process. Within one to three years of filing, you can obtain new credit, although keep in mind that higher interest rates will apply. The bankruptcy may stay on your credit report for up to 10 years.

When you consider that you can move forward with an affordable payment plan and will no longer have to worry about creditor harassment or wage garnishment, it becomes easy to see the advantages of filing Chapter 13. This type of bankruptcy protection provides a workable way for you to achieve a better financial future.