Considering Chapter 13 Bankruptcy?
By the time you finish reading this, you will know more about Chapter 13 bankruptcy. As we all know there are a number of different types of bankruptcy and it is essential to at least know the difference. Chapter 13 is not available for all kinds of situations and it should only be filed by the best qualified candidate.
Basic Outline of Chapter 13 Bankruptcy
Chapter 13 can be filed by individuals. It can only be filed by an individual who has a steady and secure source of income.
Chapter 13 will not wipe clean all your debts. It is a form of repayment plan where individuals are required to make an agreement with the creditors about a repayment plan based on his/her income.
Steps in Filing Chapter 13 Bankruptcy
The new bankruptcy laws require you to first seek counseling about your credits. You will then need to file paperwork before the process of Chapter 13 begins.
In the process, your income and debts are being looked at. A payment plan is then devised based according to your income. In order to continue with the repayment plan, both you and your creditors have to agree with the plan.
You will have to file a lot of paperwork and attend court hearings. It is often smart to have a lawyer who can help you with negotiations with creditors. The process can be frustrating, but you are under the watchful eye of the court and also protected by the court, so you have nothing to worry about. The court will help you to reach a repayment plan you can live with.
It may take up a lot of you time before it gets finalize but you will be on the winning end after all the trouble you went through.
What You Need to Know
Have you ever wondered why you should file a Chapter 13? It is just a repayment plan, so why don’t you just consolidate your debts instead? Well, the answer is you can get the court’s involvement in the process.
You have more protection and more options. The court makes sure you can afford the repayment. It is an equal process where you are treated like a willing party instead of being badgered into a payment plan you can not afford.
Additionally, once you file for bankruptcy you are protected. Creditors can no longer pursue collections. That means you may be able to protect your assets and prevent court cases.
In conclusion, if you think that you are facing financial problems, you should consider all options. You should also remember that bankruptcy us not always a good thing, as you may lose your assets and have a bad credit. Therefore, you should try to avoid it as much as possible.
