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Understanding Bankruptcy Cases and Outcomes

Hello, my name is Quianna Ridalgo. I enjoy talking to others about bankruptcy case outcomes. Court officials handle each type of debt, from credit cards to home loans, differently. Debtors must carefully prepare themselves for the court proceedings to cope with the outcome appropriately. The way creditors handle the discharged debt also interests me. Bankruptcy attorneys assist their clients with each step of the bankruptcy process from filing paperwork to meeting with creditors. Debtors and creditors both receive counsel that helps them move forward appropriately at every point in the case. The information I share on my site may help you learn about everyone's role in these complex cases. Feel free to come by anytime to learn more information about this interesting subject.

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Understanding Bankruptcy Cases and Outcomes

When Is Chapter 13 Bankruptcy the Right Choice?

by Loretta Harris

Bankruptcy can be a scary word, but for many people, it can also be a necessary step towards financial stability. There are different types of bankruptcy, each with its own set of rules and requirements. One option that may be suitable for some individuals is Chapter 13 bankruptcy. In this blog, we will discuss when filing for Chapter 13 bankruptcy may be the right choice for you.

You Have a Steady Income 

One of the main requirements for Chapter 13 bankruptcy is having a steady income. This form of bankruptcy entails devising a structured repayment plan to settle your debts within a span of a few years. Therefore, having a reliable source of income is crucial in order to make these payments on time. If you have recently lost your job or do not have a steady income, Chapter 13 may not be the best option for you.

You Want to Keep Your Assets 

Chapter 13 bankruptcy offers a distinct advantage over Chapter 7. While Chapter 7 necessitates liquidating assets to settle debts, Chapter 13 allows for debt relief without forfeiting your assets. This is particularly advantageous if you possess valuable assets like your home or car that you wish to safeguard. However, it's important to note that you will still need to pay any secured debts (such as mortgages or car loans) through your repayment plan.

You Are Behind on Mortgage or Car Payments 

If you are struggling to keep up with mortgage or car payments and facing foreclosure or repossession, filing for Chapter 13 bankruptcy can help stop these actions and give you time to catch up on missed payments. Through your repayment plan, you will have the opportunity to pay off any past-due amounts over time while also continuing to make regular monthly payments.

You Have Non-Dischargeable Debts 

Some types of debts, such as student loans, taxes, and child support payments, cannot be discharged (eliminated) through bankruptcy. However, Chapter 13 bankruptcy can help you manage these debts by including them in your repayment plan. This allows you to pay off these debts over time without the threat of collection actions.

You Want to Protect Your Co-Signers 

If you have co-signed a loan with someone else, filing for Chapter 13 bankruptcy can protect your co-signer from being held responsible for the debt. Through your repayment plan, you will make payments on the debt and ultimately pay it off, relieving your co-signer of any financial burden.

If you are struggling with overwhelming debt but still have a reliable source of income and valuable assets that you want to protect, Chapter 13 bankruptcy may be the right choice for you. It can provide much-needed relief from debt while also allowing you to keep your home, car, and other important possessions. If this sounds like it could benefit you, don't hesitate to seek guidance from a legal professional who can help guide you through the process and get you back on track towards financial stability.

For more info, contact a local company like Wiesner & Frackowiak, LC.