What You Need To Know About Chapter 13 Bankruptcy
Known as the wage-earner’s plan, Chapter 13 bankruptcy allows those who are still able to earn an income to develop a clearer path toward repaying their debts. Under the Chapter 13 rules, debtors create a reasonable plan to repay creditors in pre-fixed installments over a period of three to five years. The time is dependent on your level of income. Regardless of your income and the attending installment period, however, creditors are forbidden from making efforts to collect further sums.
Chapter 13 bankruptcy is suited for those who wish to make a more detailed plan for repayment. They tend to have a more stable income, which allows for a three-to-five year plan for repayment. The advantages are many. Filing for Chapter 13 bankruptcy offers the following benefits:
- You prevent your home from going into foreclosure or your car from being repossessed.
- Outside exempt assets, you’re eligible to hold onto many other secured items and financial instruments.
- You’re given a chance to cure other delinquent payments by refinancing or opening new loans.
- You hit pause on the accrual of additional interest on some existing debt.
Keep in mind that Chapter 13 bankruptcy is a bit more complicated than Chapter 7. On top of your existing burdens, you must stick to the plan—making it utterly crucial that you partner with an attorney with a long track record of success. The Law Offices of Veronica Deaver will make certain that you retain all rights and options, find the most effective and realistic path out of debt, and protect you from surreptitious creditors who may try to take advantage of you during the bankruptcy process.
