In today’s society, almost every aspect of living requires money. Nothing is free. And many of the things you spend money on are continuous expenses, meaning you must pay for them monthly, weekly, or even daily. In order to do so, you not only must have a continuous source of income, but that income must be enough to cover your expenses. Due to the unfortunate condition of the United States economy, there are many people struggling to make a living. Finding a job is difficult, and finding one that pays well is even harder. When your expenses are overwhelming and your income is not enough, you may find yourself contemplating bankruptcy.
There are many different ways to file bankruptcy, each identified by the Chapter of the Federal Bankruptcy Act that describes it. Some chapters are better for people with no income, while others are best for employed individuals. Chapter 13 is suitable for someone who would like the opportunity to repay at least some debts under better circumstances, such as lower interest rates. This means it is best for a person with a steady income. The person’s debts are restructured, and a repayment plan is created. This allows the debtor to use his or her future income to repay debts.
The repayment plan thoroughly describes the details and schedule of payments. Under the U.S. Bankruptcy Code, the debtor has a limit of 5 years to pay off creditors. Depending on the circumstances and amount of debt, some people may not even need the full 5 years to complete a repayment plan. Sometimes, the debt settlement can be scheduled for only 3 years. A good bankruptcy lawyer can protect your interests in these filings, ensuring favorable terms and conditions for the repayment plan. The creditors do not have control over this process, and plan approval is given by the court-even if creditors disagree with it.
Chapter 13 is one of the most common types and has many advantages over some other chapters of bankruptcy. One of the biggest pros is that you are allowed to keep all of your property. Other types, such as Chapter 7, require you to surrender some assets to pay off creditors. Another advantage is that you are fully discharged from the plan once you have completed all of the necessary payments. Additionally, you may file Chapter 13 at any time, even if you have filed before. Under Chapter 7, you cannot file again for 6 years after the process is completed.
If you determine that bankruptcy is your best option, your first step is to consult an experienced attorney. He or she will inform you of all criteria for filing and help you decide whether Chapter 13 is right for you. You will need to prepare a budget that will allow you to adhere to the repayment schedule. The attorney will also help you deal with creditors and devise the plan. The biggest requirement for this type of bankruptcy is that you have a reliable and steady source of income. For example, if you only have part time work with fluctuating hours from week to week, you probably cannot commit to a strict payment plan. Your attorney can help you find the option that is most suitable for your circumstances.
There are many different ways to file bankruptcy, each identified by the Chapter of the Federal Bankruptcy Act that describes it. Some chapters are better for people with no income, while others are best for employed individuals. Chapter 13 is suitable for someone who would like the opportunity to repay at least some debts under better circumstances, such as lower interest rates. This means it is best for a person with a steady income. The person’s debts are restructured, and a repayment plan is created. This allows the debtor to use his or her future income to repay debts.
The repayment plan thoroughly describes the details and schedule of payments. Under the U.S. Bankruptcy Code, the debtor has a limit of 5 years to pay off creditors. Depending on the circumstances and amount of debt, some people may not even need the full 5 years to complete a repayment plan. Sometimes, the debt settlement can be scheduled for only 3 years. A good bankruptcy lawyer can protect your interests in these filings, ensuring favorable terms and conditions for the repayment plan. The creditors do not have control over this process, and plan approval is given by the court-even if creditors disagree with it.
Chapter 13 is one of the most common types and has many advantages over some other chapters of bankruptcy. One of the biggest pros is that you are allowed to keep all of your property. Other types, such as Chapter 7, require you to surrender some assets to pay off creditors. Another advantage is that you are fully discharged from the plan once you have completed all of the necessary payments. Additionally, you may file Chapter 13 at any time, even if you have filed before. Under Chapter 7, you cannot file again for 6 years after the process is completed.
If you determine that bankruptcy is your best option, your first step is to consult an experienced attorney. He or she will inform you of all criteria for filing and help you decide whether Chapter 13 is right for you. You will need to prepare a budget that will allow you to adhere to the repayment schedule. The attorney will also help you deal with creditors and devise the plan. The biggest requirement for this type of bankruptcy is that you have a reliable and steady source of income. For example, if you only have part time work with fluctuating hours from week to week, you probably cannot commit to a strict payment plan. Your attorney can help you find the option that is most suitable for your circumstances.
In Fairfax Chapter 13 has helped countless local residents get their feet back under them again and see the light at the end of the tunnel of debt. Find out more at http://www.msandlerlaw.com/.
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