Essential Guide to Chapter 13
Are you unable to keep up with your debts? Would you like to establish a repayment plan with your creditors? Then you should consider a Chapter 13 filing to resolve your financial situation.
Being able to work with your creditors can be a better option than completely avoiding them. Thousands of individuals have been able to live a better life after moving forward with the decision to repay their debts under court supervision.
Chapter 13 gives you the opportunity to repay your debts over 3 to 5 years, depending on your debt load and income. The types of debts that are included in Chapter 13 are unsecured and secured financial obligations. Your unsecured creditors may receive a percentage of what they are owed or they may receive nothing depending upon the circumstances of your case. You can also choose to keep paying your secured debt or you can get rid of it.
The Chapter 13 application requires an applicant to furnish personal financial information. This may include pay stubs, tax returns, bank statements and other pertinent paperwork.
A Means Test is administered in order to see if you can comfortably pay back your debts; your income will have to exceed your debts so that it does not create an undue financial hardship. The bankruptcy court will then create a payment schedule that typically relies on the recommendations of the assigned trustee.
Payments are made on a monthly basis at an agreed upon due date. They are given to the trustee, who will then distribute them among the creditors accordingly. Once the Chapter 13 repayment plan is completed, your debts are formally discharged.
Filing for bankruptcy can come with many benefits that focus on giving an applicant a second chance.
Are you unable to keep up with your debts? Would you like to establish a repayment plan with your creditors? Then you should consider a Chapter 13 filing to resolve your financial situation.
Being able to work with your creditors can be a better option than completely avoiding them. Thousands of individuals have been able to live a better life after moving forward with the decision to repay their debts under court supervision.
Chapter 13: Overview
Chapter 13 gives you the opportunity to repay your debts over 3 to 5 years, depending on your debt load and income. The types of debts that are included in Chapter 13 are unsecured and secured financial obligations. Your unsecured creditors may receive a percentage of what they are owed or they may receive nothing depending upon the circumstances of your case. You can also choose to keep paying your secured debt or you can get rid of it.
Chapter 13: How It Works
The Chapter 13 application requires an applicant to furnish personal financial information. This may include pay stubs, tax returns, bank statements and other pertinent paperwork.
A Means Test is administered in order to see if you can comfortably pay back your debts; your income will have to exceed your debts so that it does not create an undue financial hardship. The bankruptcy court will then create a payment schedule that typically relies on the recommendations of the assigned trustee.
Payments are made on a monthly basis at an agreed upon due date. They are given to the trustee, who will then distribute them among the creditors accordingly. Once the Chapter 13 repayment plan is completed, your debts are formally discharged.
Chapter 13: Benefits
Filing for bankruptcy can come with many benefits that focus on giving an applicant a second chance.
- Regain Control of Your Finances. Getting rid of your debt in the correct manner allows you to regain control of your finances. As a result, you will not have to worry about any more collection calls, demand notices, wage garnishments or repossessions.
- Credit Repair. After your case is discharged, you will have the chance to begin repairing your credit report so that your score can improve. Once you have eliminated your debt, you will have more disposable income. This will allow you to make on time payments.
- Improve Your Well-Being. Living with a better financial situation reduces the headaches and stress that you may have been experiencing in and stress that you may have been experiencing in the past. Your emotional and physical well-being will be significantly improved.
Chapter 13: Legal Assistance
In order to improve your chances of success, you should use the services of a qualified attorney. These legal professionals have the training, education and skills that you need to get rid of your debt effectively. If you would like to eliminate your debt, then you should consult with a bankruptcy attorney today!WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE U.S. BANKRUPTCY CODE. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
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Ruben Fernandez
P.O. Box 391
Durham, NC 27701
Phone: (919) 451-1091