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

Health17 hours ago

The Pro’s and Con’s of Chemical Peels

A chemical peel is a non-surgical cosmetic procedure that resurfaces the skin to give it a refreshed, soft and smooth...

Lifestyle18 hours ago

Street Vs. Skate Trends

Streetwear is a massive global trend that’s origin comes from skate styles that have been altered. Streetwear is everyday clothing...

Home Improvement19 hours ago

Luxury Autumn/Winter Design Trends for 2020

It’s been quite a year in 2020 and what that was definitely unexpected. Summer hasn’t exactly been what we’ve been...

Reasons Why Men and Women Undergo Eyelid Surgery Reasons Why Men and Women Undergo Eyelid Surgery
Health5 days ago

Reasons Why Men and Women Undergo Eyelid Surgery

As the skin ages, the muscles supporting our eyelids weaken and gradually loses their elasticity, which is likely to cause...

5 Link Building Strategies You Can Apply For Local SEO 5 Link Building Strategies You Can Apply For Local SEO
Tech6 days ago

5 Link Building Strategies You Can Apply For Local SEO

It is common for business owners to aim for an increase in sales and revenue. This also explains why many...

Top mCommerce Development Company In India Top mCommerce Development Company In India
Tech1 week ago

Top mCommerce Development Company In India

The current pandemic of COVID-19 has made us realize the need for mobile applications for our business. In today’s time,...

Why Localization Testing Is Becoming Necessary For Applications Why Localization Testing Is Becoming Necessary For Applications
Tech2 weeks ago

Why Localization Testing Is Becoming Necessary For Applications

Many organizations are trying to expand beyond the local boundaries and move towards globalization. Finding relevant customer base, setting up...

Online Job Ideas to Earn Money As A Student or Unemployed Person beyond COVID19 Online Job Ideas to Earn Money As A Student or Unemployed Person beyond COVID19
Business2 weeks ago

Online Job Ideas to Earn Money As A Student or Unemployed Person beyond COVID19

Many students and unemployed people are searching online about the ways to make money online in various countries.  After the...

Health Informatics – The Strong Future of Healthcare Health Informatics – The Strong Future of Healthcare
Health4 weeks ago

Health Informatics – The Strong Future of Healthcare

“The art of medicine consists of amusing the patient while nature cures the disease.” – Voltaire Check across any industry...

Big Things A Digital Marketing Business Conducts Big Things A Digital Marketing Business Conducts
Entrepreneur4 weeks ago

Is Your Small Business Ready For Its 2020 Budget?

A small business may not be able to take on large corporations in terms of figures on the paper, but...

Garden Shed Buying Guide Garden Shed Buying Guide
Home Improvement4 weeks ago

Garden Shed Buying Guide

Are you searching for the best and attractive solution for storing the extra items of the house? Do you also...

6 Most Common Gynaecology Surgeries and Procedures 6 Most Common Gynaecology Surgeries and Procedures
Health4 weeks ago

6 Most Common Gynaecology Surgeries and Procedures

Have you been advised by your Singapore gynaecologist that to further examine a GYN problem, you need a procedure?  You...

3 Keys if You Want to Look Better 3 Keys if You Want to Look Better
Health1 month ago

3 Keys If You Want to Look Better

Are you generally happy with your look these days? In the event you said no, what steps can you take...

What Can You Do to Strengthen Your Business What Can You Do to Strengthen Your Business
Business1 month ago

What Can You Do to Strengthen Your Business?

Operating a business means you have a lot of weight on your shoulders to say the least. With that in...

Should You Buy Real Estate At The End Of 2020 Should You Buy Real Estate At The End Of 2020
Investments1 month ago

Should You Buy Real Estate At The End Of 2020

Experts analyzed the prospects and possible scenarios for the development of events. Residents of the US are warned about the...

Categories

Archives

Trending