Chapter 13 bankruptcy is a kind of bankruptcy that permits people to pay off their dues on time.
It allows people with significant amounts of debt to eliminate any or all debt, pay monthly on the balance and retain ownership of their home while avoiding the possibility of foreclosure.
Chapter 13 bankruptcy is commonly used by those who have large amounts of unsecured debt (debt that is not secured) since they don’t want to lose their possessions.
Do You Need to Consult With an Attorney for Bankruptcy?
If you’re thinking of declaring bankruptcy, it would be essential to consult a seasoned bankruptcy lawyer to assist you with any bankruptcy cases.
Chapter 13 bankruptcy allows the person who is a victim of chapter 13 to retain all of their property and assets. Chapter 13 debtors have to create a plan to pay back creditors over a period of three to five years. The repayments can be less than the ones required by Chapter 7 bankruptcy. Chapter 9, and Chapter 9 are part of the Bankruptcy Code; they are called “Adjustment of Debts of a Person.”
The kind of chapter you choose to have is determined by results from an assessment of your financial standing.
If you are making the first time you have filed for bankruptcy, you might be eligible for Chapter 7 bankruptcy under which you surrender any properties and assets that you had prior to filing to make it easier to manage the process of dealing with creditors once all of the debts have been paid. Chapter 7 bankruptcy doesn’t require you to pay off any outstanding debts.
If you have a chapter 13 bankruptcy that was previously filed and the debtor has not filed it before, chapter 13 is most likely to be selected instead of chapter 7, as it gives the debtor greater flexibility when selecting a payment plan or repayment plan.
This post was written by Trey Wright, a bankruptcy lawyer in Jacksonville FL with extensive experience! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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