Is a Chapter 13 Bankruptcy Right For You?
If you have fallen behind in payments to creditors such as your mortgage holder, car loans, etc.
then you may be considering a Chapter 13 Bankruptcy or Chapter 7 Bankruptcy.
Many things should be considered when determining which chapter bankruptcy you should choose.
You should consider your income and earning potential and also whether you are looking to surrender your property or keep it.
If you have the ability to make payments and you want to keep your property then Chapter 13 bankruptcy is most likely the best choice for you.
With a Chapter 13 Bankruptcy you will be able to establish an acceptable payment plan thus allowing you to keep your property.
If your property is considered exempt or non exempt you are still allowed to keep it.
Your debts are not canceled but they may be reduced under Chapter 13.
During your time of struggle with payments a certain creditor may have garnished your wages for your debt.
Under Chapter 13 bankruptcy you will be released from this garnishment.
(Although, your Chapter 13 payment may be taken directly from your check.
) You are also granted an immediate stay from creditor action such as calls and threatening letters.
Your creditors are not allowed to contact you personally for the duration of your Chapter 13 Bankruptcy plan.
If your Chapter 13 plan makes full payment then any co-signers you may have had for any loans will also be provided protection against creditors.
A Chapter 13 Bankruptcy can be filled at anytime and as many times as needed.
Your child support can't be discharged under the plan nor can taxes however you may be given more time to pay these debts.
Legal fees can be more for Chapter 13, in some cases these can be paid through the plan.
Your plan will last three to five years.
Your payments are based on your pre bankruptcy income and do not change according to your income changes unless you petition the court.
Chapter 13 Bankruptcy allows you to reconstruct your debt.
It can be an invaluable tool when your debt becomes overwhelming.
Your attorney will guide you through the process.
then you may be considering a Chapter 13 Bankruptcy or Chapter 7 Bankruptcy.
Many things should be considered when determining which chapter bankruptcy you should choose.
You should consider your income and earning potential and also whether you are looking to surrender your property or keep it.
If you have the ability to make payments and you want to keep your property then Chapter 13 bankruptcy is most likely the best choice for you.
With a Chapter 13 Bankruptcy you will be able to establish an acceptable payment plan thus allowing you to keep your property.
If your property is considered exempt or non exempt you are still allowed to keep it.
Your debts are not canceled but they may be reduced under Chapter 13.
During your time of struggle with payments a certain creditor may have garnished your wages for your debt.
Under Chapter 13 bankruptcy you will be released from this garnishment.
(Although, your Chapter 13 payment may be taken directly from your check.
) You are also granted an immediate stay from creditor action such as calls and threatening letters.
Your creditors are not allowed to contact you personally for the duration of your Chapter 13 Bankruptcy plan.
If your Chapter 13 plan makes full payment then any co-signers you may have had for any loans will also be provided protection against creditors.
A Chapter 13 Bankruptcy can be filled at anytime and as many times as needed.
Your child support can't be discharged under the plan nor can taxes however you may be given more time to pay these debts.
Legal fees can be more for Chapter 13, in some cases these can be paid through the plan.
Your plan will last three to five years.
Your payments are based on your pre bankruptcy income and do not change according to your income changes unless you petition the court.
Chapter 13 Bankruptcy allows you to reconstruct your debt.
It can be an invaluable tool when your debt becomes overwhelming.
Your attorney will guide you through the process.
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