The United States Constitution vests Congress with the authority to establish uniform laws for bankruptcies in the United States. Bankrtupcy is not meant to be the end but instead is meant to be a new beggining for you. A way to free yourself from financial burdens that you can no longer afford.
What is Chapter 13 bankruptcy all about?
A Chapter 13 bankruptcy is meant for individuals willing to pay off their debts within a period of 3-5 years. It helps individuals or small scale business owners keep non-exempt properties and pay back the creditors under a repayment plan over a 3 to 5 year period.
Chapter 13 bankruptcy can be filed for the following reasons:
You are experiencing problems in paying off secured loans such as cars or houses and want to keep such property and are able to pay and catch up before foreclosure or repossession.
You have a tax obligation or a student loan that cannot be discharged in Chapter 7 then you can pay these obligations over time.
You want to retain non-exempt property such as investment homes.
You qualify for a Chapter 13 if you: (i) have regular income; and (ii) you have no more than $250,000 in unsecured debt and no more than $750,000 in secured debt.
What kinds of debts are discharged in Chapter 13?
At the end of your repayment plan you may discharge certain debts including: personal loans; credit cards; certain income taxes; and mortgage where the mortgage is no longer secured by the market value of the property.
Some debts are non-dischargeable and those include: long-term debt such as a residential mortgage; student loans; alimony; payments imposed due to criminal convictions; and child support.
How do you pay debts under a Chapter 13 bankruptcy?
You can use the following sources of income to pay your bills under a Chapter 13 repayment plan: Wages or business profits; pension income; social security benefits; alimony; and child support.
What are the advantages of filing Chapter 13?
What are the disadvantages of Chapter 13?
During your free consultation we will review the particulars of your situation and help you determine whether a Chapter 13 bankruptcy is the best option for you.