Understanding Bankruptcy Chapter 13

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Unlike chapter 7 bankruptcy, when someone files for bankruptcy under chapter 13, they are looking to repay some or all the debts in their name with lower or no interest at all. This involves liquidating their assets and restructuring debts so that they can apply future income towards paying off creditors.

By law, a debtor is given 5 years to pay back a creditor and the process is supervised by the courts. Debtors are allowed to keep their property, but the court creates and approves a new interest-free plan for the debtor. The plan outlines the details of the transactions and how long it will take. It is up to the debtor to start repayment within 30-45 days after the courts have approved the plan.

Chapter 13 is more advantageous than chapter 7 because it offers debtors with a full discharge option if they complete all payments outlined in the plan. Another advantage is that a repayment plan doesn't have to be approved by creditors, it only has to be approved by the Court. Under chapter 13, it is also possible to save your home, and end up with better credit than any other bankruptcy option.

To qualify for chapter 13, you must have a regular income. A bankruptcy attorney can help you determine if filing under chapter 13 is the best solution for you and what it entails, such as:

If you are worried about your financial status and feel Bankruptcy may be a solution, Attorney Search Network can refer you to the right chapter 13 bankruptcy attorney. Contact Attorney Search Network and we can connect you with a chapter 13 bankruptcy attorney that can help with your bankruptcy case.

If you have any questions about the information provided above, please contact Attorney Search Network.

Contact Attorney Search Network for an Attorney Referral to an pre-screened Bankruptcy Lawyer.

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