ABC's of Chapter 13 Bankruptcy

Are you willing to repay the loans in your name without your property being foreclosed? Then you should file for Chapter 13 bankruptcy. It is also known as the “wage earner's bankruptcy”. Such an insolvency case allows the debtor to repay all or a portion of the loans in easy terms with reduced or no interests. Such a legal process will allow the restructuring of the debts in your name. While filing such a case at the court of law will stop creditors calls, it will also allow you a flexible payment plan to repay your debts. However, you need to have a regular steady income with which you will repay the loans. You should remember that the insolvency laws varies from one state to another. But, the general laws of the US allow the debtor a time period of up to 5 years to  repay the loans. However, you'll need the help of an attorney to negotiate for the time period and the amount of interests to be paid at the court of law.

What happens in a Chapter 13 bankruptcy?

In this form of bankruptcy, your property is not at stake. The court will approve a new payment plan with reduced interest rates as appealed for by your attorney. Remember, an experienced Chapter 13 bankruptcy attorney will be able to strike the most suitable deal for you. No trustee is needed in the process, but, you can involve a trustee to keep a track of the financial transactions. Let an experienced attorney make the repayment plan. S/he is well-versed with your financial situation and thus, will be able to create a suitable repayment plan to suit your situations.

Are you eligible for filing chapter 13 bankruptcy?

Only an experienced attorney will be able to determine whether you are eligible for filing a Chapter 13 bankruptcy case. However, there are certain parameters on which your eligibility will be based. You should consider the following things while filing such a case at the court of law:
1.If you have properties like a car or a house that you can't afford to lose at a foreclosure, you should file for Chapter 13.

2.You also need to check whether your monthly income is high enough for you to repay the debts.

3.You should only file for Chapter 13 if all your debts are secured.

4.You might not be the right person to determine and assess all these factors accurately. Therefore, you should hire the services of a professional who is adept in handling cases related to the Chapter 13 bankruptcy. Richmond, VA is  place where you will find a few of the best bankruptcy lawyers.