Is Chapter 13 Bankruptcy Right for You?

If you are a debtor and you don’t know anymore how to pay for your debts, it would be a good idea to think about Chapter 13 bankruptcy. In order to make the right decision and to be certain that this option would be advantageous for you, see to it that you seek the advice of a bankruptcy attorney. It is true that Chapter 7 bankruptcy could wipe out all your debts, but there are still instances that Chapter 13 would be a better choice.

Why go for Chapter 13?

One of the reasons why people go for Chapter 13 bankruptcy is simply because they do not quality for chapter 7. Though anyone could file for this type of bankruptcy, not all of them are qualified. For example, if your income for the last six months is greater than the median income in your state, you could not file for chapter 7.

Another thing that could hinder you from filing for chapter 7 is if you have a disposable income that is higher than what is required by the law for those who wanted to file for chapter 7.

Always keep in mind that the law governing bankruptcy is something that a layperson could never easily understand. This is why you should never go for a bankruptcy filing without the aid of a professional bankruptcy attorney. Doing so will just make your experience very much frustrating.

Your definition of income, expenses and disposable might not be the same as how the federal government defines it. There are times that the federal government could make your income look higher due to their different definition.

Chapter 13 bankruptcy: A preferable option

This type of bankruptcy filing is best for people who still have plans to pay for their debt but simply wanted to make up for the missed payment. It could only be possible with this option. With this, other debts such as tax obligations and student loans could also be paid over time

This is definitely the best option for people who are sincere when it comes to repaying their debts. You need to be able to let the court see that you are truthful and it capable of paying. With this option, you do not have to give non-exempt property to a trustee. It is possible to simply get the payment of the debts from your income.

Also, this type of filing is best for your co-debtor. He or she will not be asked to pay for your debt provided that you ensure that payment of your debts would be made on time and would be according to plan.

There are certainly a lot of advantages when you go for chapter 13 bankruptcy. To understand it more, call Riverside Bankruptcy. We are always ready to answer all your questions. It is our goal to provide you with the assistance you need if ever you need to file for bankruptcy.

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