Author: Joseph Then
Considering Chapter 13 Bankruptcy?
Thursday, June 19th, 2008 @ 4:47 am
Chapter 13 bankruptcy is one type of bankruptcy. There are various types of bankruptcy and understanding each type is important. Chapter 13 is available only in certain situations and only those who are best qualified for this type of bankruptcy should file under it.
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.
Filing Chapter 13 Bankruptcy
So how do you go about filing for bankruptcy? First and foremost, you need to see a credit counselor to assess your financial status before the paperwork can begin.
During a Chapter 13 your income and debts are looked at and a payment plan is devised based upon your income. You and your creditors must agree to the legally binding repayment plan.
It is not easy filing for paperwork and going to court and the best suggestion I can offer you are that you should hire a lawyer to assist and guide you. Under watchful eyes of an experienced lawyer and the court, you don’t have anything to worry about. The court will ensure that you would be able to afford the repayment plan.
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.
As mentioned above, you should file for Chapter 13 instead of debt consolidation because the court can protect you. Other than that, you will also have more options. The court will ensure that you are able to afford the repayment plan and thus treated like a willing party.
Other than that, another advantage of filing for bankruptcy is that you are protected from creditors when you file for bankruptcy.
Your goal? Start utilizing the knowledge you have acquired her but you also have to remember that there are many negative effect of bankruptcy so, is always best to avoid it. Try working together with your creditors if you feel that you are facing financial problems.
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