Bankruptcy does not always have to leave a debtor penniless. Chapter 13 bankruptcy is actually a restructuring of the debt of the consumer, so they can repay some or all of the debt they have taken on. Chapter 7 involves complete liquidation but Chapter 13 bankruptcy is designed for people who are looking to repay as much of their debt as quickly as possible.
If you do not meet the criteria for Chapter 7 bankruptcy, you should consider Chapter 13 instead. Use the contact form to provide some basic information. A qualified local attorney will be in touch to offer a free consultation, answer all your questions, and determine the best course of legal action.
Chapter 13 is designed to assist the debtor in paying back their debts, according to a schedule, and with brand new payment terms. This type of bankruptcy can help you keep your home, your car and your family intact. If you are receiving harassing phone calls and letters from creditors, this type of bankruptcy can eliminate all of that and improve your financial well-being.
With Chapter 13 bankruptcy, the debtor will typically create a repayment plan that has them debt free in three to five years. An assigned trustee will provide oversight as you work to repay your debts. They will collect and distribute funds to the creditors listed against the bankruptcy. The trustee is usually an employee of the state in which the bankruptcy has been filed. By federal law, the debtor will have a maximum of five years to pay off all creditors. The courts will monitor the bankruptcy throughout the duration. It is important to have legal counsel during the bankruptcy process as there are many rules and regulations to be aware of.
Use the contact form to get in touch with a qualified attorney today. Your assigned lawyer will be in touch shortly to discuss your options. The initial consultation is free and free of risk. We are here to support you as you navigate the complicated waters of bankruptcy.
For consumers, the aim of Chapter 13 bankruptcy is to secure better repayment terms, such as a reduced or eliminated interest rate. This is increasingly important given these uncertain economic times. Unlike Chapter 7, the debtor can actually use future earnings to pay off their debt according to a set schedule. The idea is that the debtor will be earning enough to repay their debts in a timely fashion. Liquidation of assets can be avoided through Chapter 13 bankruptcy. The debts are actually restructured, with advantageous terms, and repaid within a period of five years. The entire process is controlled by the courts and you should enlist the support of a qualified attorney.
Individuals who choose Chapter 13 bankruptcy can keep their property, and may eliminate interest. The repayment plan will be documented and approved by the court, and must be in effect with one or two months of the execution. A trustee may or may not be appointed to handle the collection and distribution of debt. Regulations for Chapter 13 vary from state to state so be sure you have the right attorney working for you. Creditors are actually prohibited from collecting debt directly from the debtor at this point. Chapter 13 is a complicated legal proceeding but can actually result in simplified terms, and a reasonable payment plan.
Once a debtor has repaid all debts under the plan, they will be given a full discharge. Your attorney can instruct you on any exceptions to this rule. The repayment plan can be executed even if a creditor objects, as long as it is approved by the court. In any case, Chapter 13 bankruptcy is only available to those individuals with sufficient income to repay their debts.
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