Published on:

St Louis Bankruptcy: Four Benefits Of A Chapter 13


A lot of people mistakenly believe that a St Louis Chapter 13 bankruptcy is the wrong route to take. This is because most people are familiar with the Chapter 7 option (in which unsecured debt is knocked out, and you are done about four months after your start), but also because the benefits of a Chapter 13 are not well known. Below is a brief description of some of those lesser known benefits:

To begin with, a Ch13 is described as a repayment plan over the course of three to five years during which certain debts are paid back. It is a chance to get caught up on assets you would like to keep, and it gives you an opportunity to take a deep breath. But what are some specific benefits?

  1. A Chapter 13 will stop a foreclosure on your home, and give you a chance to get come current on the mortgage. Instead paying one big bulk payment to the bank, the Ch13 repayment plan will allow the debt to be paid back over a period of several years (3 to 4).
  2. It will put your student loans on hiatus for the entire time that you are in the plan. This is especially beneficial if the student loan companies want outrageous monthly payments that you simply cannot make.
  3. The filing of a Ch13 will get a repossessed car back. And once you have it in your possession, the interest on that vehicle will drop down to about 4%. For some people, this could literally shave off several thousands of dollars that you otherwise would have had to pay.
  4. A Chapter 13 will actually rebuild your credit rating quicker than you think. By the end of the first year of the repayment plan, you can generally expect to see your credit score jump up by about 100 points. And by the end of the plan, it will be back up to where you want it.

As you can see, there are a lot more benefits to St Louis Chapter 13 than might initially meet the eye. But the best way to fully understand how the whole process works is to get in touch with us, and set up an appointment!!


The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.

Contact Information