If you have found yourself in considerable financial strife you may be considering personal bankruptcy. There are different forms of bankruptcy. Chapter 13 isn’t quite considered the clean slate that other forms of bankruptcy are but in the long run it is a much better option for you and your financial future. Consult with a Chapter 13 attorney to discuss if this is the best option for you.
The main prerequisite of Chapter 13 is that the person filing must have a regular income. For this reason it is usually most common among those who have credit card debt or something similar that has got out of control. Usually they are able to make payments but not payments high enough to please their creditors.
Chapter 13 allows you to retain your property and possessions. It does not allow for the liquidation of your assets but rather a restructure of your debts. This alone is a big advantage over other forms of bankruptcy as it simply allows people the help of the courts to work themselves out of debt.
Initial consultations with a Chapter 13 attorney are sometimes free of charge, but be sure to ask up front what the bankruptcy attorney fees are for each lawyer that you consult with. When you meet with them take documents outlining all your debt, the required repayments and confirmation of your income. This can sometimes be an embarrassing task but rest assured these attorneys have seen it all already and are only there to help you. Withholding information from them will only be detrimental to you.
Your attorney will prepare your case to take before the court. They can assist with budgeting and ensuring that filing for bankruptcy is in fact the best option for you. They help you to complete the necessary paperwork and help you organize payment of the applicable filing fees. They will set up the required meetings with your creditors and can often act on your behalf at these meetings, sometimes not requiring your presence. Your attorney will help devise a repayment plan and decide what needs to happen to make the repayment plan work. This may be lowering the interest rate you are paying or reducing payment amounts. Chapter 13 requires repayments to be made over a five year period. Once approved by the court they will provide a written plan outlining the repayment schedule and time frames that must be adhered to. Creditors must accept the ruling of the court however they are allowed to make an objection to the court.
If you have a regular income and think a Chapter 13 attorney could help you work your way out of the financial trouble you’re in, then this form of bankruptcy may work well for you. This could be a way to keep your home and your assets all the while giving you the ability to manage your own debts. In five years time you could have worked your own way out of financial ruin which would be something to be proud of. The only way you’ll know if this will work for you is to get your financial records in order and go and consult with a legal expert.