Filing for Chapter 13 Bankruptcy

People are often confused whether to choose between filing for Chapter 13 or Chapter 7 bankruptcy. Although both options help in ending debt issues, Chapter 13 is a believed to be the more reasonable of the two: Chapter 13 gives the option of reorganizing repayment plans while keeping some properties, while Chapter 7 allows debtors to pay for the debts through liquidation of properties. Sorting out which one will work best for you before deciding which type of bankruptcy to file is the key in ending debt and starting anew.

The first step in filing for Chapter 13 is to know if you are eligible for it. As stated on the website of Birmingham-based Greenway Law, LLC, it is best to have your documents ready to prove that you have enough income to confirm a repayment plan. Next is to check and confirm if your debts are too high, or you can work out an achievable plan or payment. It should be clear to you and on your document how many properties you have and their estimated value because this can directly affect your repayment plan.

Consulting with a lawyer helps in filing out bankruptcy forms to make sure everything is filled out correctly. They can also help in advising you regarding the filing of your forms. After filing, you will be requested to appear in two hearings together with the trustee at the courthouse for review and future plans. Since these meetings are what help determine your intention of repaying your debts, creditors are allowed to attend for them to ask questions and even negotiate. A confirmation hearing will be called for you to present your repayment plan, where creditors can subject and the judge to decide whether to approve or not.

The repayment plan begins 30 after the judge has approved of it. If problems occur, you should report to the court immediately. Missed payments would dismiss the Chapter 13 bankruptcy case. After completing the requirements for the repayment plan, the bankruptcy is discharged, freeing you from any legal obligation for past unpaid debts that are listed on your repayment plan.

Although bankruptcy cases tend to be complicated, asking advice and guidance from lawyers would make it easier and more manageable.