Chapter 13 Bankruptcy: The Popular Choice for Wage Earners
Chapter 13 bankruptcy is one of two bankruptcy options offered to the majority of consumers. It is also known as the "wage earner's plan" because it needs its filers to have regular income in order to be eligible. Based on how much income the individual filing bankruptcy has compared to the median income for their state, the court will decide exactly how long the bankruptcy process will last but it will not be for more than five years.
Chapter 13 Bankruptcy and Its Advantages
Whereas Chapter 7 bankruptcy is the more extreme of the two and needs the individual to sell off all nonexempt possessions, Chapter 13 is much less severe. A Chapter 13 bankruptcy allows the individual keep his or her assets while attempting to pay off creditors over the course of the three to five year period. That means you don't have to worry about your home being foreclosed on and you can restructure your secured debts and lower the monthly payments in the process. However, you must be receiving adequate enough income in order to be eligible for Chapter 13 bankruptcy.
What You Need in Order to File Chapter 13 Bankruptcy
If you believe that you fit the criteria needed for a successful Chapter 13 bankruptcy then it might be time to take action. But first you should seek out a licensed bankruptcy attorney who can objectively look at your case and tell you whether or not you are eligible for Chapter 13 and, if so, whether or not tis your best option. Here is an idea of what you'll need in order to successfully file your Chapter 13 bankruptcy:
--A complete list of your assets and liabilities
--A schedule of your current income and expenditures
--A schedule of any unexpired leases and/or executor contracts
--Accurate statement of your financial affairs
The above bulletins also serve as four purposes as why you need a credible bankruptcy attorney at your side. You will want to be sure that all necessary materials are complete and extensive in their contents.
Also needed before the bankruptcy can be filed in its entirety consist of:
--The total amount, source, and frequency of your income
--A comprehensive list of all your creditors as well as the levels and reason for their claims
--Complete list of all your property
--A detailed list of all your monthly living expenses which will include food, rent, utilities, taxes, transportation, etc.
"Is Chapter 13 Bankruptcy Right for Me?"
Get on the horn with a qualified bankruptcy lawyer today to learn more about all things bankruptcy. Give them the details of your case and you'll find their assistance to not only be helpful but necessary if you want to get in and out of your bankruptcy as rapidly and as thoroughly as possible.
