The Basics of Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy quick review?

Chapter 13 bankruptcy allows people with few assets to pay back creditors over three years instead of paying them all at once. It also gives debtors a chance to keep their homes and cars.

 

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is an option available to individuals who owe money to creditors. If you have little or no income and cannot afford to repay your debts, you may qualify for chapter 13 bankruptcy.

 

Why Do People File For Chapter 13 Bankruptcy Instead Of A Chapter 7?

Chapter 13 bankruptcy allows debtors to pay back some or all of their unsecured debts over three to five years instead of having them wiped clean. This type of bankruptcy is also known as “wage earner” bankruptcy because it requires the debtor to make monthly payments to the court, usually under $100,000 Where Chapter 7 is usually used for higher debt enabling individuals to liquidate assets in order to pay their debt.

 

What Happens During The Process?

If you qualify for chapter 13 bankruptcy, you will need to complete an application with the U.S. Trustee. Once approved, you will receive a notice from the court stating when you must appear at a hearing. At the hearing, you will meet with a judge who will determine whether you should be granted a discharge. A discharge means that you won’t have any further obligations to repay your creditors.

 

Can I Still Pay Off My Debt After Filing For Chapter 13 Bankruptcy?

No, once you file for chapter 13 bankruptcy, your debts will not be discharged. However, you will still have to pay back some of your debt. In addition, you will have to make monthly payments to the trustee until you have paid off all of your debt.

 

What Are Some Things To Look Out For When Choosing An Attorney?

If you decide to hire an attorney, there are several things to consider before making a decision. First, find one who has experience with bankruptcy law. Second, ask how much experience he or she has had with your type of case. Third, find out whether the attorney has handled similar cases in the past. Fourth, find out whether the lawyer has any disciplinary actions against him or her. Finally, find out whether the firm has been sued by clients.

Read more about how to choose a bankruptcy attorney here

When you are ready you can find a bankruptcy lawyer near you using our search by zip option

 

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