When anyone files for Bankruptcy under Chapter 13, their purpose is to have the opportunity to repay the debts in their name. Unlike Chapter 7 which involves liquidation of assets, this process involves restructuring debts which allows the debtor to use whatever income they may have in the future to pay off the creditors. Filing Chapter 13 Bankruptcy is thus applicable for a debtor who has a regular income, and can afford to request for such adjustments or reductions.
The US Bankruptcy Code gives the debtor a ceiling of 5 years, within which the creditors must be paid back. While the Walnut Creek Bankruptcy attorney will safeguard your interests, the entire process is carried out under the supervision of the Bankruptcy courts.
While debtors are allowed to keep all of their property, the court approves a new interest-free plan for repayment. A written plan is created giving details of all the transactions that will occur, and the duration of the same. The transitory stage of paying a trustee who then pays a creditor, as in Chapter 7 Bankruptcy is usually eliminated with Chapter 13 Bankruptcy. Although in some cases people may involve a trustee who would take care of disbursing money to the creditors as per the plan. Also, as per the law the creditors must strictly adhere the repayment plan approved by the court and are in fact prohibited to collect any claims from the debtor. Your Walnut Creek Bankruptcy attorney will prepare new repayment plan to best suit your situation. Your home will be preserved under Chapter 13 if there is not substantial non-exempt equity in the home, and you successfully complete the payment plan.
The one advantage of Chapter 13 over Chapter 7 Bankruptcy is the full discharge option which is not applicable under Chapter 7 filing. The most important criteria for a person to be able to file for Chapter 13 Bankruptcy is that the individual must have a regular income. There are a few other criterions that must be met for filing a Chapter 13 Bankruptcy; your attorney will be the best person to introduce you to these!
There are certain complications that are concerned with the filing of Bankruptcy under Chapter 13. To know if you are suitable for filing a Bankruptcy under Chapter 13 you need to consult some Walnut Creek Bankruptcy Attorney. That attorney will evaluate you financial assets and will recommend you suitable guidelines for filing your petition with the federal Bankruptcy court. Moreover he will also represent your case in the court and make sure that you are able to avail the benefits of Chapter 13 Bankruptcy law and are able to able to secure your exempt and non exempt property.
So if you are considering filing a Bankruptcy under Chapter 13, you can contact the highly qualified Walnut Creek Bankruptcy attorneys. For that you can refer this site: korblaw.com. The company has a team of highly qualified and experienced Walnut Creek Bankruptcy attorneys, who could be very helpful to you during your Bankruptcy filings. For more details you can log on to: www.korblaw.com
About the Author:
Michael Brown is a renowned article expert working for KorbLaw.com. For any help regarding Bankruptcy issues you need to contact an expert Walnut Creek Bankruptcy lawyer. Walnut Creek Bankruptcy advisors are well informed of all the pros and cons concerned with Walnut Creek Bankruptcy laws.