Consolidate Your Debt In To One Affordable Payment With Chapter 13 Bankruptcy

Posted by Recovery Law Group
6
May 15, 2023
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For people in precarious financial situations, Chapter 13 bankruptcy is an alternative to take into account. When deciding whether to file for Chapter 13 bankruptcy, it will be crucial to weigh the advantages of doing so. In this article, we go over these specific benefits of Chapter 13 bankruptcy filing and whom should you choose for hiring a professional attorney. 

  

How does Chapter 13 bankruptcy works? 


Chapter 13 bankruptcy in Sacramento is a repayment plan that proposes to the court paying back some or all of your outstanding debt to creditors. It typically has a period of 36 to 60 months. You often only pay back a part of the total amount owed to creditors. Be aware that if your gross income is less than the state's median income, a 36-month plan will be recommended to the court; if it is higher, a 60-month plan will be recommended. An individual filing for bankruptcy under Chapter 13 must offer an amount they would repay their creditors, as well as a timetable for doing so. The first plan payment is due 30 days following the filing of the bankruptcy case. The remaining dischargeable debt that wasn't repaid over the duration of your repayment plan will be discharged after it's over, and you won't be held personally responsible for paying it. 

  

Benefits of filing for Chapter 13 bankruptcy  


Chapters 7, 11, and 13 of the bankruptcy code are the most often used ones in the US. Out of these three choices, Chapter 13 typically gives the filing party the most flexibility and normally enables them to avoid the drawbacks of other types of bankruptcy. They can keep their assets as long as they consent to a structured debt payback arrangement, in other words. In contrast to Chapter 7, which mandates that the debtor liquidate any qualified assets in order to satisfy their creditors, Chapter 13 typically protects the debtor's property. 

  

Your financial affairs will be in the hands of a designated trustee in Chapter 13 bankruptcy, and most Chapter 13 trustees are extremely liberal when it comes to a debtor's repayments. The debtor will be able to breathe a little easier knowing they won't have to sell their house, their car, and their other things to settle their debt, even though it will take far longer for a Chapter 13 bankruptcy to entirely discharge a debt (usually at least five years). 

  

Creditors cannot demand that you repay any remaining debts in full once your Chapter 13 repayment plan is finished. Any property that you make payments on remains yours, and one to three years after filing, you could even be able to gain approval for new credit lines. When you file for Chapter 13 bankruptcy, an automatic hold is also placed on your property and assets, preventing creditors from continuing with their collection efforts. Being able to deal with creditors is rarely enjoyable or simple, so this alone can be a huge relief. 

  

Whom to choose? 


The process of declaring bankruptcy is not only difficult, but also time-sensitive. It is best accomplished with the aid of a reliable law firm like Recovery Law Group. It is a debt relief agency that provides bankruptcy consultation in San Antonio and helps people to manage and eliminate their debt under federal code. For more details and consultation, give them a call right away. They'll discuss your particular circumstance, and give you straight answers and a rundown of your best options. 


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