Bankruptcy is one of the most complicated legal terms that need complete attention and proper understanding. This article contains the facts, advantages, and tips on bankruptcy chapter 13 that will help readers understand the key facts of Chapter 13 bankruptcy as well as guide them to realize the difference between Chapter 7 and Chapter 13 bankruptcy.
Chapter 13 bankruptcy might not seem like an appealing idea. But, this process has a long-term benefit which will help you financially. If you are dreading chapter 13, it is advisable that you consult a Chapter 13 Bankruptcy Lawyer. An assistance of a lawyer is solicited because, without the expertise and the skill, you might not be able to execute the required steps with perfection. Though some will say that bankruptcy is nothing but putting your signs on some papers, there are some legal aspects which might get you totally confused. For this, you might need to have legal assistance.
Chapter 13 gives you the liberty to pay up as you are capable of. With this process, you would be allowed to make monthly payments to someone who has been hired by the court. This person is known as the trustee. The amount of the payment, which you would have to make would get determined by your ability to pay up the amount of money. This is one of the benefits of the process. You would not have to sacrifice your life to pay up the creditors. A skilled lawyer will be able to plan out the payment structure and help you get through the period with ease.
Debt discharge is a benefit which chapter 13 comes with. Yes, because of the duration of the process, you might not have to pay 100 percent debt. In fact, no one pays the total debt over the course of four to five years. There are some debts which get removed or get dropped off. This too you would have to plan with a lawyer and proper strategy.
Timing plays a big role in filing chapter 13. You need to file the process in right time to save your home. The secret is to file the process before the foreclosure is filed. Only if you haste in that matter and beat the bank, you would be able to save your home and plan out the mortgage amount carefully.
A Proper credit report is essential for everyone. It comes handy when someone submits the application for a loan. Bankruptcy can play havoc on your credit record. When someone files bankruptcy the person does not get the loan of any kind for many years. However, you would be able to get the loan or repair your credit record with chapter 13. Because this process requires proper planning and strategizing and you pay off most of the debt, it is easy to get the record right.
Before you file bankruptcy or you opt for a particular process, you need to go for a legal consultation. What is good for other people might not offer you the same benefit. Your background and your situation would decide whether Chapter 13 would be the right option for you or chapter 7 would be the better way.
