Chapter 13 Bankruptcy
What Is Chapter 13 Bankruptcy?
Chapter 13 refers to a section of bankruptcy law that allows individuals with regular income to repay some or all of their debt. For example, if you are someone who has fallen behind on your mortgage payments and your mortgage company is threatening to foreclose on your house, a chapter 13 bankruptcy may be just what you need. Through a chapter 13 bankruptcy you can take your past due mortgage payments and spread them out up to 5 years, instead of the three to six months your mortgage company might give you. Then begin paying back those missed monthly mortgage payments while picking up your regular monthly mortgage payment and preventing foreclosure on your home. Ready to talk?
How Does A Chapter 13 Bankruptcy Work?
Continuing with the example of a person who has fallen behind on their mortgage payments. With a chapter 13 bankruptcy, a chapter 13 repayment plan is filed along with your case. The chapter 13 plan spells out which creditors you are going to repay and how you are going to repay them. Some creditors may be paid back in full, while others may only receive a small percentage of what you owe. You along with your attorney will formulate a repayment plan that is based upon how much money your household earns, the assets you have, the monthly bills you pay and the debts you scheduled to repay. Your chapter 13 plan will set up a monthly payment for you to make toward the debts you scheduled to repay. Learn if you qualify for a Chapter 13.
Is A Chapter 13 Bankruptcy Right For Me?
Whether or not a chapter 13 bankruptcy is right for you depends on many factors. No article or website can ever give you an answer to this specific question because every bankruptcy case is based on an individual set of circumstances. No two people will ever have the exact same set of circumstances that leads them to need to file bankruptcy. When making the decision about whether or not to file bankruptcy do not rely on the internet or your cousin’s best friend’s sister. Filing bankruptcy is a serious legal matter. You should always speak to a licensed attorney, experienced in bankruptcy law in the state where you will file your bankruptcy case. Speak with an attorney.