Articles
Newsletter
| Understanding Chapter 13 Bankruptcy |
 |
 |
 |
| Written by Joseph Then |
| Sunday, 10 August 2008 19:55 |
|
By the time you finish reading this, you will know more about Chapter 13 bankruptcy. As we all know there are a number of different types of bankruptcy and it is essential to at least know the difference. Chapter 13 is not available for all kinds of situations and it should only be filed by the best qualified candidate. Basic Outline of Chapter 13 Bankruptcy Chapter 13 can be filed by individuals. It can only be filed by an individual who has a steady and secure source of income. A Chapter 13 is a repayment plan. Debts are not wiped clean. Instead the individual agrees to a plan in court that established repayment of debts. Creditors also must agree to the plan, which is based on the individual's income. Filing Chapter 13 Bankruptcy The new bankruptcy laws require you to first eek counseling about your credits. You will then need to file paperwork before the process of Chapter 13 begins. After that process is done, your income and debts are gone through and a payment plan will be drawn out according to your income. However, both the creditors and you, and most importantly the court have to agree with the plan. You will have to file a lot of paperwork and attend court hearings. It is often smart to have a lawyer who can help you with negotiations with creditors. The process can be frustrating, but you are under the watchful eye of the court and also protected by the court, so you have nothing to worry about. The court will help you to reach a repayment plan you can live with. The process of fling for Chapter 13 can be time consuming but don't worry about that because as long as you are still undergoing the process of filing for Chapter 13, your creditors will not be able to collect any form of debts from you. Things to Know After you have read all these, you may be wondering why you should file for Chapter 13 if it is only a repayment plan. Well, my answer to that is so that you can get protected by the court. Going to court and getting the court involved is not always a bad thing. As mentioned above, you should file for Chapter 13 instead of debt consolidation because the court can protect you. Other than that, you will also have more options. The court will ensure that you are able to afford the repayment plan and thus treated like a willing party. Other than that, another advantage of filing for bankruptcy is that you are protected from creditors when you file for bankruptcy. Of course, as with bankruptcy in general, it is always best to avoid it if possible. You can start with trying to get creditors to work with you and then only move to bankruptcy if you are feeling threatened with losing assets and court proceedings. About the Author: If you are declared a bankrupt, it means that you have problems in taking loans in the future. That's not all, the bankruptcy tag will stick with you for up to 10 years! Find out how you can avoid Bankruptcy by going to this website NOW ==> http://www.outofbankruptcy.info Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
Stumble It!
Members : 1254
Content : 2297
Web Links : 1
Content View Hits : 310051
Content : 2297
Web Links : 1
Content View Hits : 310051