chapter13bankruptcyinformation.net

*Note: This article is not legal advice, it is a personal opinion based on experience from the author. If you are seeking legal advice please check with your local bankruptcy attorney.

Reorganization or liquidation process is what bankruptcy is referred to. You can eliminate your debt whether its personal or of a business nature in federal bankruptcy court. People want to qualify for total debt elimination. You can repay part of what you owe instead. An option for many is a liquidation of assets. Some of what you own can then be sold at auction to pay a portion of what you owe. In order to liquidate file for chapter 7. Some decide they would rather reorganize their debt. A person can keep all their belongings with the condition that monthly payments will be made for 3 or 5 years. This option pays off debt or a portion of it. Many Americans opt for a chapter 13 reorganization.

Chapter 7 bankruptcy

If you file for bankruptcy you are known as the debtor. If your debt is out of control an option for you could be a chapter 7 bankruptcy. The debtor will not have to repay any debt included in discharge. At times people will get stuck with valuables that can’t be discharged because of a lien. If you don’t want you property to be repossessed you must make payments to the lien holder. After the discharge is complete creditors may not contact you by phone or mail. People with a lot of old debt and who are low income should file for a chapter 7 bankruptcy.

Chapter 13 bankruptcy

For chapter 13 bankruptcy a debtor will file a payment plan with the federal courts to pay back some or all the debts that they owe, over a three to five year period. If you want to keep your car and home file a chapter 13 bankruptcy. This can include material possessions that are late in payment and equity that was not covered by your exemption. You will be required to make monthly payments towards your secured debts and even pay extra to get caught up on past due obligations. The advantages of chapter 13 is you can keep your car and home. A debtor can make payments for secured debt keeping what they own.

How many times can I file bankruptcy?

You cannot file chapter 7 again till 6 years have lapsed since your last filing. The good thing about chapter 13 is you can file over and over. Chapter 7 bankruptcy is affordable you only pay a $ 170 filing fee and a $ 30 noticing fee. There will be a $ 30 noticing fee as well as a $ 155 filing fee. Don’t worry about your filing fee costing more because you filed a joint petition with your spouse.

Will I have many legal appointments to attend?

A 341 meeting is a meeting of creditors that you will attend. You will be joined by creditors and a bankruptcy trustee. This proceeding takes place around 40 days after bankruptcy is filed. At this meeting you may be asked about your financial position. Trustees and creditors have been known to file motions or adverse actions at this time. Don’t forget to dispute any debts at this time. If another hearing is required you will be sent notice in the mail.

Is there light at the end of a bankruptcy?

If you are severely behind on debt a bankruptcy will not make things much worse. A bankruptcy may actually be less damaging than your history of unpaid debts. Proof of a bankruptcy will remain for 10 years. I knew a lady who filed bankruptcy and after it was done she was able to secure credit for a new home. Lots of people just need a fresh start. Many die leaving a mountain of debt. After you file bankruptcy you will want to make wise money decisions. Being responsible with money is taught skill that many never learned. This can happen if you or your parents were never educated on how to handle money or if you never had enough money to handle. Vow to make good money choices in the future and you never have to be in debt again.