Why Should Someone File Bankruptcy Chapter 13?
Kimberly Ann Bastes
Why Should Someone File Bankruptcy Chapter 13?
Whether you are facing foreclosure or you are behind on your car payment, you should consider filing a Chapter 13 bankruptcy. This type of bankruptcy will help you keep your home, if you qualify, and reduce your debt. Usually a repayment plan will last three to five years.
Typically, the plan is a written document that describes the trustee's payment schedule. It will include how much the trustee will pay to each creditor and how long the repayment plan will be. The length of the plan will depend on the value of your nonexempt property.
The most common types of debt that are discharged in a Chapter 13 proceeding are personal loans and credit card balances. Other debts are medical bills, child support, criminal fines, and certain long-term obligations.
In addition to reorganizing your loan payments, a Chapter 13 bankruptcy can also allow you to wipe out secured debt, such as a mortgage or second mortgage. This type of bankruptcy is more suited for people who have steady income and a lot of valuable assets.
However, not everyone who files for bankruptcy is eligible for Chapter 13. Those who qualify will need to pass a means test. In addition, they will need to have sufficient disposable income to make payments to all of their creditors. Those who file for bankruptcy but don't follow through on their plan will have their debts not discharged.
It's important to remember that the Chapter 13 bankruptcy process will remain on your credit report for seven years. This is why it's important to choose a bankruptcy option that is right for you.
If you need a lawyer, please call this law firm for a free consultation:
Ascent Law LLC
8833 S Redwood Rd Suite C
West Jordan UT 84088
801 676 5505
www.ascentlawfirm.com
