Filing Chapter 13

If it concerns different types of bankruptcy, there are other ways that you are able to file depending on who you are and where your income is currently tied up. Chapter 13 bankruptcy is a way of filing for people who live in   America. These people are going to experience a reorganization of their funds, which will be monitored, by a bankruptcy court.

The chapter 13 bankruptcy is geared towards people who are in debt but who are currently earning money. If they’re able to carry out a court sanctioned plan, they’re going to be able to be altogether rehabilitated from their debts. If you’re badly in debt, you have your choice of filing for either Chapter 7 or Chapter 13 bankruptcy. It’s all going to depend upon what kind of income you’re bringing in. If you’re not earning enough income, there is not going to be any way that you can file for Chapter 13, because Chapter 13 requires that you carry out certain responsibilities. If you’ve filed for Chapter 13, you’re going to have a plan to pay off your creditors over 3 to 5 years. In this time period, the creditors to whom you owe money cannot attempt to get this money from you except through the bankruptcy court. You’ll still get to keep your property, and the creditors are going to end up with less money than they’re actually owed. It’s sometimes a good thing to file for Chapter 13 instead of Chapter 7.

For example, you’re going to be able to stop a bank from foreclosing on your home, and you will be able to have a mortgage that has been accelerated actually be reestablished once you’ve completed the plan. Nevertheless, the disadvantage is that you’re going to have this on your record for at least 10 years. You’re also not going to be able to get additional credit while you’re trying to pay off your debts. If you file for Chapter 13, you’re going to develop and file a program with the courts. This is going to tell you that you have to find ways to pay off your debts. These ways include committing every dollar of the money you earn towards the debts for at least 3 years, making sure that the creditors are going to get at least as much money as they would if you file for Chapter 7, and provide a meaningful pay off to your creditors.