All the information you need to make an educated decision
Chapter 13 Bankruptcy Help
Chapter 13 bankruptcy is a form of reorganization, in which you follow a payment plan to your creditors under the discretion of a bankruptcy court. It can be used only by individuals, often those who did not meet the requirements of a Chapter 7 filing.
In filing for Chapter 13, a bankruptcy court will consider your income, debt load, and other financial assets to determine your minimum payments. Depending on your circumstances and your debts, you will pay in full, partially pay, or not pay at all any given number of your individual debts. Any debts that are not paid through the plan most likely will be discharged.
If your income is considered too high for Chapter 7 filing, Chapter 13 may be your best option. In order to qualify, your income must be sufficient to pay off some of your debts, but not so high that you should be able to find means of repayment other than bankruptcy. Your unsecured debt load must be less than $307,675, while your secured debt load must be less than $922,975.
In order to file Chapter 13, you must first seek credit counseling from an approved organization. Upon completion, you will be given certification to file with a bankruptcy court to begin your case. The entire process generally takes about three to five years.
Bankruptcy vs. credit counseling
Are you thinking the only way out of debt is filing for bankruptcy? Before you do, consider contacting a credit counseling service for help. This article compares credit counseling to filing for bankruptcy.
When debt help is not enough: 3 reasons for filing bankruptcySituations can arise that make paying your bills impossible, or that render you ineligible for participating in debt relief efforts such as credit counseling. When you're enduring any of these circumstances, consulting a bankruptcy attorney can provide information about your rights and the consequences of filing bankruptcy.
Is bankruptcy right for you?Long-term unemployment, health problems and fallen home values can make debt management a nightmare. Here are some tips for deciding if bankruptcy is your best debt management option.
What Happens to Cosigners When You File For Bankruptcy?Bankruptcy is a very powerful financial tool that can affect the lives of those surrounding the debtor. Cosigners of debt should pay special attention as they are often not protected by someone else's bankruptcy.
Your Credit Rights After Bankruptcy: Discharged Debts and Zero BalancesRebuilding your credit should be at the top of your priorities after filing for personal bankruptcy. During this process, keep a close eye on your credit report as items can often be reported incorrectly by the credit reporting agencies. In general, all discharged debts should be reported as zero balances after bankruptcy. Often they are reported incorrectly and can end up hurting your credit more than necessary. To avoid these mistakes, understand your credit rights as a consumer even under the stain of bankruptcy.
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