A Chapter 13 bankruptcy is a plan put in place under court discretion where the individual is given time to pay off certain debts and reorganize his financial situation. A chapter 13 bankruptcy is a much more complex and rigorous process for the individual. Understanding the options, filling out the extensive and complex paperwork, and understanding what options are most beneficial to your specific financial situation can be a confusing and often unrealistic process. Below is some information regarding a Chapter 7 Bankruptcy
However, you are advised to seek a legal representative from a trusted source which will counsel you as to the proper course of action. When filing our bankruptcy lawyers will make sure protect your assets using every legal avenue possible.
Chapter 13 basics and benefits
Chapter13 is a significant tool available to prevent even greater financial difficulty. Chapter 13 allows you to reduce the amount owed on certain debts. For example if you purchased a car for $30,000 and the current value of the car is $12,000 you may be able to reduce the amount owed on the debt from $30,000 down to $12,000.
Chapter 13 requires you to pay some of your debts in full from the income you are able to generate. You must propose a repayment plan for a period, established you the court, of three or five years. The option of a three year plan or a five year plan is based on their gross monthly income. The test the court uses is based on you income versus the median income.
You must come up with a plan that the court will approve. Coming up with a plan that will be approved by the court whilst protecting your assets and reducing your debts is a highly complex process. It requires knowledge of bankruptcy law, and experience in the field.
You should be advised her to seek a knowledgeable, trusted, and tenacious bankruptcy attorney will likely maximize your ability to keep many of the assets you own and reduce you debts.
Discharging of debts
It is important to understand that all debts are not discharged under a Chapter 13. Usually the amount you still owe on unsecured debts after the Chapter 13 time period has ran out will be discharged. Here is a list of some unsecured debts.
- Credit Card debts
- Medical Bills
- Most court judgments
Secured debts that are not discharged will remain on your record. If you do not list debts on your chapter 13 filing they will be regarded as non dischargeable. Other secured debts and debts that are not dischargeable are below.
Is Chapter 13 right for me?
- School loans
- Alimony Payment
- Some taxes
- Court fines
- Successful creditor objection
Deciding to file for Chapter 13 is a difficult choice. A free financial assessment by our bankruptcy lawyers will assess whether a Chapter 13 filing is in your best financial interests.
At Downtown La Law our bankruptcy lawyers will provide you with a low cost, personal, and confidential bankruptcy legal representation. Here are some of the reasons why
- An entirely Free and Personalized consultation including an analysis your financial circumstances by our team of expert financial consultants
- Individualized Client Service specifically tailored to your financial and personal needs
- Comprehensive assessment of the different legal avenues determining whether bankruptcy is the best option for you.
- Low Cost, Knowledgeable and Effective representation of your Chapter 13 bankruptcy
Your success is our success. Please Call (888) 649-7166
. For More Important Information regarding Chapter 13 Bankruptcy’s visit our Chapter 13 Frequently Asked Questions