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Chapter 13 |

Chapter 13, also known as the reorganization bankruptcy, gives you the option to restructure your debt and make payments over time, without the need to forfeit your assets. In most circumstances, Chapter 13 Bankruptcy is the best option for someone that has a steady, reliable source of income but, because of unforeseen circumstances, has gotten behind on his or her bills.

If you have a large amount of equity in your home and other assets such as multiple vehicles that you aren't willing to sacrifice, Chapter 13 Bankruptcy will give you that advantage over Chapter 7. With Chapter7 you must forfeit your assets ,which are then auctioned to cover your debt. With Chapter 13 Bankruptcy that is not a concern. You will keep your assets and the court will set you up on a repayment plan for your debt. It is important that you have a bankruptcy attorney that is knowledgeable in insolvent law who can guide you through the bankruptcy process and help you to decide which plan is best for your unique situation.

After you and your bankruptcy attorney have decided that filing Chapter 13 Bankruptcy is what is best for you, the process begins with your bankruptcy attorney filing the bankruptcy petition. Once the petition is filed you will be granted an automatic stay, stopping all collection proceedings. Chapter 13 bankruptcy is not a quick fix. The average term for a repayment plan is three to five years. During this time you will have to be able to make the payments set up by the court, while you still make your current monthly bills. That will be one of the stipulations mandated by the court for Chapter 13 Bankruptcy, that you can manage your current bills and the court appointed payments concurrently. The court will give you smaller payments stretched out over a lengthy period to help you make this possible.

Having a bankruptcy attorney assist you with your bankruptcy is not mandatory, but it is highly advisable. The creditors that are allowed, vary from state to state. Also, the limit on secured and unsecured debt is adjusted periodically, so it is important that you have someone that knows the law to help walk you through the process. Bankruptcy can mean a new start. Make sure your bankruptcy is done right, so your new start comes with a clean slate. Make it easy on yourself and have a knowledgeable bankruptcy attorney on your side to help you through the bankruptcy process.

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