Through the use of a Chapter 13 bankruptcy lawyer, Chapter 13 bankruptcy basically allows the consumer/debtor to retain their home and automobiles and to repay a part of their debt, at a low interest or interest free, over several years after which the bankruptcy will be discharged. Declaring Chapter 13 bankruptcy allows a consumer the chance to repay some or all of their debts over a period of no more than five years. Whereas Chapter 7 bankruptcy compels the bankruptcy court trustee to sell the consumer/debtor’s non-exempted assets in order to repay creditors, a chapter 13 bankruptcy allows the consumer/debtor to restructure their debt through their bankruptcy attorneys, and to make one affordable monthly payment based upon their income. The consumer/debtor will need to demonstrate to the bankruptcy court their ability to make payments and their regular income.
Bankruptcy Process: Chapter 13 Information;
Because Chapter 13 bankruptcy is basically a US Federal Government debt consolidation program, the consumer/debtor is allowed to keep all of their property. After all, the consumer/debtor is basically offering to pay back up to all that is due, based upon their income.
A written plan will be created for the interest-free repayment to the creditors by the Chapter 13 bankruptcy lawyer
The plan outlines all of the payments that will be made and the length of the plan, which can be up to five years
The Chapter 13 bankruptcy repayment has to start within 45 days after the bankruptcy filing
If, during the course of your Chapter 13 bankruptcy, something occurs to impact your ability to keep up with your bankruptcy repayments, one of your bankruptcy attorneys will prepare a new repayment plan to reflect your current ability to repay your creditors
One benefit that Chapter 13 bankruptcy offers thatdoes not is the full discharge option, which is not available in a Chapter 7 bankruptcy filing. A debtor/consumer will be given a full bankruptcy plan discharge after the complete their entire payment plan, which in the longest case scenario, is up to five years. Another benefit to choosing a Chapter 13 bankruptcy plan is that the consumer’s repayment plan can be created so long as the bankruptcy court approves of it, even if the creditor does not.
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