Bankruptcy laws have two dominant choices that can be considered by anyone looking to file for bankruptcy. These are chapter 7 and chapter 13 that are contained in the bankruptcy laws. The resolution on which alternative to go with will be determined by your circumstances and by how much you actually owe.
Chapter 13 Bankruptcy is very frequently used for the purposes of reorganization and debt relief that is obtained through the bankruptcy court. The popularity of chapter 13 stems from the fact that anyone facing foreclosure will be assisted so that they do not have to lose their property particularly if they have a regular income. By organizing your debts you are able to make one affordable monthly payment while you keep all your property.
Your bankruptcy attorney will help you to come up with a chapter 13 plan that will designate how much you are able to pay every month to the trustee. The payment should be completed within a stipulated period of time. You also must be able to prove that you can actually make the payments for you to be able to save your property. Before any agreement is determined on chapter 13 you will go through what is known as the means test that figures out what your disposable income is. After this test your monthly payment plan will be determined.
The advantage of chapter 13 plan is that the there are priority claims that are given due consideration. These include domestic support obligations obligations of child support and any tax debt that must be paid. Other payments might not be given any allocation depending on the means test calculation. These might include unsecured creditors credit card companies and medical bills. Another advantage of this kind of bankruptcy is that there will b no complete or unconditional foreclosure of a person’s individual or business assets and there will be no costly and difficult rearrangement of debt.
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Under the automatic stay filing you get bankruptcy protection and this inevitably brings to a stop any form of lawsuits any form of repossessions any foreclosures and evictions any form of garnishments or attachments any form of utility shut offs and also any form of debt collection activity. Because of the bankruptcy exemption there will be property that the debtor will retain and preserve throughout the bankruptcy process.
To file for this kind of bankruptcy you will need to locate a good bankruptcy lawyer and then deliberate the problem with them. The lawyer will need to know all your current financial details and with this information they will outline a plan for dealing with the situation and bringing a favorable outcome to it. After the layer has all the information they will determine if you need to go to court or not.
You must comprehend the law the plan and the lawyer’s determination before you decide to go for the bankruptcy. It is essential to be aware of the advantages and disadvantages of the bankruptcy. Full details are required when filing the bankruptcy and this includes your liabilities your income your assets and your expenditures. Make sure that you pay the legal fees for the lawyer and any court fees. Given the options this is the best recovery road that you can take.