When you need an absolute answer to questions about Chapter 13 bankruptcy Information, it is best to talk to a qualified lawyer. Most times an introductory interview is given at no charge. This article will provide basic information that may help in decide if this Federal action is right for you.
As an individual, you can file under this particular code. An individual can also mean an owner of a business entity but that entity cannot be a partnership or incorporated. An income that meets the person’s basic expenses but comes short of the monthly debt responsibility is a candidate. Because of this requirement, Ch. 13 is also known as the wage earner’s plan.
Another option for debt relief is chapter 7. This allows for complete discharge of non-secured debt that you have at the time of filing. You will be able to keep your home and automobile if it meets the code limits. Other assets that do not meet guidelines will have to be forfeited to the trustee.
Under Ch. 13, you may still keep your home and car and most other assets. However, this section does not zero out your obligation to pay your creditors. You will still have to pay them, but through a modified plan set up through the court. Under this code, there are additional debts that can be discharged that are not dischargeable under others.
Also, under the wage earner’s plan, you can may be able to stop foreclosure proceedings and catch up on past due payments. Other secured debt (not including the home) can be modified to extend payments over the life of this action. In effect, this may lower the payment. If you have co-signers on some of your secured debt, they too may be protected under this plan.
This is a consolidation. All of your debt will be handled by the trustee of the court. You will have one payment per month and will be responsible for making it to the trustee’s office. The court will then disperse the money to the creditors. Your repayment plan is for thirty-six months, but under some situations, this can be extended for no more than an additional twenty-four months.
Chapter 13 bankruptcy Information can be confusing and amazingly detailed. This article is merely an introduction to the subject. For experienced and knowledgeable information, it is suggested you find a bankruptcy lawyer. Browse the internet to get more information, and to find a reputable lawyer in your area.
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