If you are in dire debts and are probably considering filing for bankruptcy, the best option would be chapter 13. This chapter allows a debtor to keep property and pay debts over time, usually 3 to 5 years. While the debtor will propose a repayment plan to make installments to their creditors, the plan (whether it will be for 3 or 5 years) depends on the state median. If, for instance, the current income of the debtor is greater than the applicable state median, then the plan generally must be for five years. During this time, the creditors are not allowed to continue with their efforts of collecting debts.
Hiring a lawyer experienced in Chapter 13 Bankruptcy Lawrence KS is important before filing. The lawyer will give you the right advice and help you understand the dos and don’ts of filing for bankruptcy. Some of the things that you should know about chapter 13 bankruptcy are:
Reasons chapter 13 is preferred by many
Chapter 13 offers many advantages over chapter 7. First, you can reschedule secured debts and have them extended them over the span of a chapter 13 plan, and this may lower payments. It offers the debtor an opportunity to save their property from foreclosure. This chapter gives an individual an opportunity to stop foreclosure proceedings. This provision helps the individual avoid delinquent mortgage payments over time, but still be able to pay all mortgage payment that come due during the chapter 13 plan on time. Click here for more details.
Chapter 13 provides adequate protection to debtors against their creditors. Under Chapter 13 Bankruptcy Lawrence KS, individuals can make plan payments to chapter 13 trustees who then distribute the payment to the creditor, in which case this chapter acts as consolidation loan. So no direct contact between the debtors and creditors thus providing protection to debtors.
Eligibility
Regardless of whether an individual is operating an unincorporated business or self-employed, they are eligible for relief under chapter 13 if:
• Their unsecured debts are below $383,175
• Their secured debts are below $1,149,525
An individual is eligible to file under Chapter 13 Bankruptcy Lawrence KS, if their prior petition was dismissed to the willful failure of the debtor to appear before the court or failure to comply with the court’s order.
Hooge John R Attorney At Law PA boasts many years of experience in bankruptcy Lawyer Services Industry. Visit the website for more information.
