Connect with us

Law

Frequently Asked Questions About Chapter 13 Bankruptcy

Frequently Asked Questions About Chapter 13 Bankruptcy

If you are going through hard times financially, and having trouble meeting your debt obligations, there are several options available to you. You must be careful to get sound advice from appropriate professionals, as there are many financial service companies preying on vulnerable people, and getting involved with them may leave you worse off. One such option you might consider is chapter 13 bankruptcy, and here are some frequently asked questions. If you think you may pursue this option, schedule an appointment with a bankruptcy attorney as soon as possible for guidance.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a process where a debtor agrees to repay all or a portion of his debts as arranged through the federal bankruptcy court.  You will not incur any penalties or interest, and money is paid to a trustee appointed by the court, who then distributes it to your creditors. Certain debts may need to be repaid in full, while other debtors may only receive a small portion of the entire debt. Repayment takes place over a period of three to five years, and once the debtor has successfully completed it, he is no longer responsible for any remaining debts that are eligible for discharge.

Who is Eligible?

There is a set of requirements that must be met to be eligible to apply. You must live in, do business or have property in the US, have regular income, unsecured debts of less than 336,900, secured debts less than 1,010,650 dollars, not a stock or commodity broker, have not intentionally dismissed a bankruptcy case in the last 180 days, and has undergone credit counseling from an approved agency within the last 180 days. If eligible, you would have to apply the means test to see if you qualify based on your income, expenses, etc…

Frequently Asked Questions About Chapter 13 Bankruptcy

Why Would You Choose Chapter 13 Bankruptcy?

Debtors have two options when it comes to declaring bankruptcy, the other being chapter 7, where all  qualified debts are discharged, and you are not responsible for paying back any of it. If you are in financial straits, this may sound preferable, but it is not always the best option. When declaring chapter 7, any property not exempt from liquidation—if it exists—is used to help pay down the debt. If you have any non-exempt property that you deem valuable and would likely lose in a chapter 7 filing, chapter 13 would be a better route.  Though, in some cases, people need to sell their property because of insufficient income. Other reasons you would pursue this option would be a desire to repay your debts, making too much money to qualify for chapter 7, having significant debt that is dischargeable under chapter 13 but not 7, having sufficient assets to repay the debt, but needs  temporary relief from creditors, or having filed chapter 7 within the last eight years.

What Debts are not Eligible for Discharge?

There are several debts that cannot be included from discharge. They include debts that you were paying back outside the plan, alimony, child support, money owed to injured parties as a result of drunk driving, tax debts incurred within three years, restitution, fraud, student loans, damages from civil cases resulting from malicious conduct, new debts that you incurred after the plan and debts from creditors who were not notified of the Chapter 13 filing.

Continue Reading

Recent Posts

medic-563423_1920 medic-563423_1920
Health3 days ago

Why is Investing in Healthcare is the Best Option for Medical Professionals?

Healthcare industry is considered as one of India’s largest sectors, both regarding employment and revenue generation. It is expected to...

Vial Box Vial Box
Tech3 days ago

The need and use of the Vial Box

There are a lot of healthcare professionals and caregivers that have to assist the living facilities and there are a...

We are currently living in the golden age of nesting. Especially as part of the millennial generation, we gravitate towards nesting - ever-changing and thrifting quite often. We are currently living in the golden age of nesting. Especially as part of the millennial generation, we gravitate towards nesting - ever-changing and thrifting quite often.
General4 days ago

How To Buy an Abstract Rug Online and Avoid the Mistakes Involved

We are currently living in the golden age of nesting. Especially as part of the millennial generation, we gravitate towards...

Disabled Disabled
Entertainment5 days ago

Begin Your Love Story With Disabled Dating

We want you to know – you aren’t DISABLED, you are just differently-abled because the only disability in life is...

In winter, a lot of people travel to major attractions such as warm beaches. These travelers often have to pack a lot of stuff depending on the destination. In winter, a lot of people travel to major attractions such as warm beaches. These travelers often have to pack a lot of stuff depending on the destination.
Lifestyle5 days ago

Are You Selling at Least The Basics To A Beach Vacationer

In winter, a lot of people travel to major attractions such as warm beaches. These travelers often have to pack...

Entrepreneur5 days ago

What You Need to Know Before Starting a Business

Congratulations, you did it. You decided to quit your day job and start a business. Being your own boss is...

.Net 3.1 Latest Features .Net 3.1 Latest Features
Tech6 days ago

.Net 3.1 Latest Features Released By Microsoft

.Net 3.1 Latest Features Released By Microsoft The latest version of .net core 3.1 has been released by Microsoft that...

Sports6 days ago

BEST SPORTS FOR KIDS TO ENGAGE IN THIS YEAR

We are in a generation where our children are living an inactive lifestyle with very minimal or no sort of...

Business6 days ago

Buying a Strata Property – Is it a Good Investment for You

Buying a strata property is a scenario where you purchase a small portion of the complex and get access to...

AR-VR AR-VR
Tech1 week ago

What You Should Know About Google’s New VR/AR Features for the Web and Mobile Applications

Virtual reality (VR) and augmented reality (AR) are emerging technologies that provide users with a wide range of unique and...

open kitchen cabinets open kitchen cabinets
Home Improvement1 week ago

Get the Kitchen of Your Dreams with the Best Remodeling Tips

Get the Kitchen of Your Dreams Among all the rooms of the house, the kitchen is the most versatile. It...

cyber security specialist cyber security specialist
Tech1 week ago

What does a Cyber Security Specialist do?

In our current reality, where a Security Guard ensures resources and a Bodyguard ensures individuals, a Cyber Security Specialist shields...

Hire A Holiday Lights Service Hire A Holiday Lights Service
Home Improvement2 weeks ago

Why Would You Hire A Holiday Lights Service? Why Not?

The holidays bring us the tradition of baking, shopping, wrapping, parties, Christmas pageants and parades, tree decorating, and hanging lights....

plasma screen plasma screen
General2 weeks ago

Keep in Mind the Important Things Before Planning an Event

When thinking of the hire of a screen, don’t forget to look at how it is going to be presented....

Chauffeur Service Chauffeur Service
General2 weeks ago

Cheap Business Chauffeur Service

At the corporate level in the UK, business people are engaged in life whether they run a small or a...

Categories

Archives

Trending