Understanding Chapter 13 Bankruptcy

For those who are dealing with debt, it can be difficult to find relief. It is important to try and work out arrangements with your creditors so you can pay down your debt and stop the collection calls and communication. If you have tried different methods of overcoming your debt and still find you are in a financial mess, filing for bankruptcy may be an answer. Most people should never consider bankruptcy until they have exhausted other forms of clearing their debt. For many, chapter 13 bankruptcy provides welcome relief and allows them to improve their financial futures.

What Occurs During a Chapter 13 Bankruptcy?

In filing any type of bankruptcy, it is always best to hire an attorney. Bankruptcy laws can be confusing to understand and you will need an attorney to file your bankruptcy through the courts and represent you before the judge. This will make the process go much more smoothly and will allow you to rest assured in knowing your bankruptcy is being handled appropriately.

The first step to filing for chapter 13 bankruptcy involves you meeting with your attorney. Most bankruptcy attorneys ask their new clients to bring in information on their assets, monthly income and debts owed. It is vital you list every debt owed on your bankruptcy filing or you will continue to be responsible for the full amount owed. When these are listed in your bankruptcy, you cannot be pursued for the debt and you cannot be taken to court.

Chapter 13 allows you to keep your property. You will not have to liquidate your assets, but you will be required to make a monthly payment through the court. The judge will make the approval decision on both your bankruptcy and the monthly payment for your debts. This allows most people to pay off their debts within three to five years, depending on the amount owed.

For more information about bankruptcy, contact the Rapa Law Office and make an appointment for a consultation. Through an attorney, you can get approved for your bankruptcy and put your debts behind you. With this process, you will be able to rebuild your credit and improve your financial future.

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