Understand the Process of Filing Chapter 13 Bankruptcy

One interesting fact about chapter 13 bankruptcy is that once you file for this type of bankruptcy, your life will basically continue on as it was before. There is no need to worry about losing your house or cars or any of your possessions as a result of filing for chapter 13 bankruptcy.  This type of bankruptcy is where you will be set up on a repayment plan and can repay the debts you owe in a timely manner.  Thousands of people file for chapter 13 bankruptcies each day and you don’t even know that it’s going on around you.  

If you are way behind on your bills and you are facing foreclosure on your home, filing for chapter 13 bankruptcies is really a good thing to do.  It can allow you the time you need to catch back up on your bill payments and keep you from losing your home in the process.

Chapter 13 bankruptcy is good for someone who has fallen behind on their bills and is facing foreclosure on their homes because it provides them some relief of all of these issues. If you have had a short-term issue such as a job loss or a sickness that has kept you out of work for a prolonged period of time, filing for a chapter 13 bankruptcy may be what you should do.  It will allow you the time you need to get back on track and start your life moving in a more positive direction.  

Chapter 13 bankruptcy is different from filing a chapter 7 bankruptcy, because with a chapter 13 bankruptcy you are set up on a payment plan that will allow you to pay back your debts, not wipe them clean from your record.  You will need to make sure you have a steady income that will be there for you for at least a period of 3 to 5 years before filing a Chapter 13 bankruptcy.  This is because you will be making payments on your debts, so you are going to need an income you can rely on to help you get these payments made.  

You will have to go through some paperwork to see if you qualify for a chapter 13 bankruptcy first.  You cannot just assume that you are eligible to do so.  These pre-filing requirements weed out those people who will not benefit from filing for bankruptcy and only allow those who will do better as a result of filing.  

As you can see filing for a chapter 13 bankruptcy does not mean it’s the end of life as you know it.  It can be a good thing if your back is against the wall and you have no other options available to you.

Leave a Reply

Your email address will not be published. Required fields are marked *