Filing Under Chapter 13
Filing for bankruptcy can be a stressful and emotional process. If you are receiving calls from collectors and your debt is more than you can currently pay off, filing for bankruptcy may be your best option. If you have a regular income and pay your normal living expenses, but are unable to afford extra money to paying off your debts, filing under Chapter 13 may be the best option for you. Remember, bankruptcy should always be the last resort, but if you feel that it is your ONLY option, Chapter 13 carries a few distinguishable differences from Chapter 7. Under a Chapter 13 Bankruptcy, individuals are allowed to reorganize their financial situations under the supervision of the federal bankruptcy court. This type of bankruptcy will generally allow the debtor to retain most of his property as long as he adheres to a court-approved payment plan.
Advantages of Filing Under Chapter 13
Chapter 13 allows individuals to maintain a lot of their property while still filing for bankruptcy. If you have a sufficient income from wages, pension, child support or any other form of disposable income and your debts is less than $336,900, you can file for a Chapter 13. Chapter 13 Bankruptcy allows an individual to catch up on secured loans before foreclosure or repossession may take place.
It also may be the best option for filers that have tax obligations or student loan debt. Different from Chapter 7 as well, this particular Chapter protects co-signers. Most people who chose to file under Chapter 13 still have the means to provide for their everyday expenses and often receive court monitored payment plans to help them repay their debts. If you are unsure of which Chapter to file under, contacting an attorney from The Law Offices of R Mark Weaver can help you. We are here to assist you in all of your bankruptcy questions and concerns.