There is a fair amount of information on chapter 13 bankruptcy that all consumers should be aware of, and especially if you own a business or even if you are just planning to start up a business in the future, to benefit yourself.
Chapter 7 bankruptcy information also applies here, but the chapter 13 bankruptcy information is going to be the most important for you to be aware of.
What You Need to Know
When talking about a chapter 13 bankruptcy filing procedure it refers to the condition that allows a borrower with a stable income and limited debt to pay off their bills under a court approved repayment plan over a 30 to 60 month period. So from this chapter 13 bankruptcy information we can determine that only if you have a little amount of debt will you be able to go through under the chapter 13 bankruptcy law.
If you are in terrible financial trouble on the other hand, then you are going to need to determine what your other options are because chances are that you will simply not be approved for this. The thought is that the person would be able to pay off all their debts under a 90 month period, and so if you owe hundreds of thousands of dollars clearly you are probably not going to be able to do that.
It is all up to the court, as they will look at your financial records and detect how willing you have been to pay your bills in the past. They will take all of this into consideration and use it to conclude whether or not they want to approve you for a repayment plan.
An additional piece of chapter 13 bankruptcy information entails what chapter 13 permits, and this is that it permits people with a regular income to develop a plan to repay all or part of their debts. It offers a number of advantages, especially over liquidation under chapter 7. Perhaps most importantly of all, chapter 13 offers you the chance to keep your home from foreclosure. This is particularly important if you have a family, as you have probably lived in your home for some time now and undoubtedly want to stay away from foreclosure on your home.
One more major advantage of chapter 13 is that it allows you to reschedule secured debts and stretch them over the life of the chapter 13 plan.
Even though bankruptcy can certainly be a blessing in some instances, you need to keep in mind that it is not just a golden ticket out of your financial despair. You may not have to deal with all the creditors and the debt anymore, but you will have a mammoth hit on your credit and you will have most if not all of your nonexempt possessions seized, and this includes any businesses that you may own and any credit cards that you may have. It will also remain on your credit report for up to ten years.
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