When faced with overwhelming debt, it's important to explore all the options available to regain financial stability. One of the most effective solutions for individuals struggling with debt is Chapter 13 bankruptcy. In this blog post, we will explore how Chapter 13 bankruptcy can provide a fresh start and help you regain control of your finances.
Understanding Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also known as a debt repayment plan, allows individuals with a steady income to reorganize their debts and create a manageable repayment plan.
Filing for bankruptcy is never an easy undertaking, but for those struggling to meet their financial obligations, it may be a necessary one. Unfortunately, because many people are unfamiliar with the details of Chapter 13, the procedures for filing, and the expectations of the courts, mistakes may occur along the way. Some of the most common mistakes can actually prove costly to the settlement of your bankruptcy case. Here are a few things that you should know to help you avoid some common Chapter 13 bankruptcy mistakes.
If you're in a lot of debt and bankruptcy seems like a valid option for dealing with it, then make sure you hire a bankruptcy attorney. Finding one that looks after your best interests is easy if you take these precautions.
Figure Out Which Bankruptcy Option You're Using
There are two bankruptcy options you can file for when faced with a lot of debt, including chapter 7 and chapter 13 bankruptcy.
Both Chapters 7 and 13 will provide overburdened consumers with some financial relief. While there are many different types of bankruptcy, Chapters 7 and 13 are used often. All types of bankruptcy are named for the code number that covers bankruptcy laws. The one you chose is based on your needs and your financial situation. For some basic information about how these types of bankruptcy differ, read below. For more in-depth information, speak to a bankruptcy lawyer.
When it comes to bankruptcy, the fear of losing personal property can stop many from filing. Some of that fear is unfounded, however. Read below and find out what exemptions can do for you when you file chapter 7.
Assets Can Be Seized
While it seldom happens to most filers, chapter 7 law allows the trustee to take assets from filers. The asset is sold and the money goes toward certain administrative expenses and more.
