Chapter 13 Bankruptcy is specifically designed to work with the court to stop foreclosure, wage garnishments, repossession of property and assets, and lawsuits and creditor harassments. The bankruptcy petitioner will need to work with the court by filing in the court asking for consolidation, repayment options, reduce, or even eliminate debts.
Chapter 13 Bankruptcy option will help a property owner to keep their valuable assets and property when handling the debt and as soon as the filing is done and the bankruptcy attorney fees are paid, all the property of the owner will have an automatic stay.
When compared with debt settlement versus chapter 13 bankruptcy, both have their own features and are used under different circumstances. Chapter 13 bankruptcy has its own benefits and advantages. Chapter 13 Bankruptcy helps especially when people are faced with short-term financial losses such as being jobless or getting an unexpected huge loss in a business, etc.
Basic Bankruptcy Requirements
Here are the basic bankruptcy requirements one needs to meet before filing for Chapter 13 Bankruptcy:
- Eligibility: Chapter 13 Bankruptcy can be filed only by individuals who have less than $336,900 unsecured debts or less than $1,010,650 of secured debt. Eligibility to file for Chapter 13 Bankruptcy is automatically void if you had previously applied for bankruptcy but was dismissed because of various reasons such as following court orders, etc.
- Feasibility: Feasibility measures the debtor’s ability to pay sufficient money to the creditor over a period of time from his income source. The debtor must be able to demonstrate to the court that he/she has the ability to pay a certain percentage of payment enough to repay the loan over a period of time.
When you file for Chapter 13 Bankruptcy, you will have to provide the court with a list of your assets and liabilities, your income and expenditure statement, statement of financial affairs, and a copy of your most recent tax return. With filing for bankruptcy, you will not have to sell your assets to immediately pay your creditors and you will be able to get out of creditor harassments, and can stop home foreclosure as you repay the part of your loans over a three to five year plan.
bankruptcy, bankruptcy images
Related posts:
- Understanding Bank Foreclosure Terminology
- Will I Lose my Home in Bankruptcy?
- Bankruptcy Attorney Fees
- Claim Bankruptcy in California
- Bankruptcy Petition Preparers
- Filing for Bankruptcy
- What a Bankruptcy Attorney Can Do For You
- Is Bankruptcy For Me?
