The Workings of Chapter 13 Bankruptcy
Chapter 7 and Chapter 13 bankruptcy are the most common ones which individuals file for getting rid of their debts. Depending on their financial condition, their assets, income, and debts, a suitable course of action is determined by a skilled bankruptcy attorney. In Chapter 13 bankruptcy, bankruptcy filer ends up paying some amount of debt while getting a discharge on others. According to Dallas based bankruptcy law firm Recovery Law Group, it is important to know what course of action is preferred by the client. Bankruptcy can help you and your family by putting collection actions on hold and eventually getting rid of huge amounts of debts. Post-bankruptcy, you can get a fresh financial start which can help improve your credit rating too.
Finding Bankruptcy Lawyer
The first and most important step of bankruptcy filing is finding an experienced attorney for yourself. Since bankruptcy is a complicated process, with fewer chances of success without a lawyer, it is important that you hire one soon. You need to consult with various bankruptcy lawyers in order to hire the best-suited one. You can call 888-297-6023 to schedule an appointment to discuss your case with adept bankruptcy attorneys. It is important to discuss your income, assets, and your debts to determine the course of action for your case.
Finalizing Repayment Plan
Chapter 13 is different from others because it includes a repayment plan through which you pay some portion of your debts over a period of 3-5 years’. You are not required to pay off all your debts in this fashion but continue making payments based on your disposable income for the entire duration of the plan. Any remaining debts are discharged.
Why do people prefer chapter 13 bankruptcy?
People who find themselves ineligible for Chapter 7, apply for bankruptcy under Chapter 13. Though Chapter 7 is preferred, as most debts are discharged in it, in a shorter time frame; yet people with substantial income and huge debts will not be able to pass the means test. Moreover, Chapter 13 allows you to not only catch up on past due payments but also provides you an option to include debts like child support, alimony or income tax in your repayment plan. If you wish to keep your non-exempt property, you can do so in Chapter 13, if you are paying an amount equivalent to it to your creditors. Additionally, if you had previously filed for Chapter 7 bankruptcy within the past 8 years, you can file again using this chapter of bankruptcy. With an experienced attorney by your side, Chapter 13 bankruptcy Dallas is the best way to get rid of debts while protecting your assets.