Chapter 13 bankruptcy is a part of the system that's designed to allow folks to restructure their personal debts. You may be wondering, though, what it means to restructure your debts under Chapter 13 bankruptcy law. Here is a breakdown of the different parts of the process and the implications that it may have for you.
Setting Up a Payment Plan
You will be asked by the court to set up a plan to pay your creditors.
Chapter 13 bankruptcy law exists in order to help out folks who need time to restructure their debts in order to resume payment. This distinguishes it from Chapter 7, the other common approach, which leads to liquidation of your assets and a full discharge of your debts. If you're wondering what the point of pursuing Chapter 13 bankruptcy might be, here's what you need to know.
More Time to Pay
A bankruptcy attorney is one of the most useful resources at your disposal if you are having extreme financial difficulties or have more debt than you can reasonably repay within a realistic timeframe. Listed below are two ways that a bankruptcy attorney can assist you.
Provide You With Various Debt Relief Options
One of the biggest reasons to see a bankruptcy attorney is the fact he or she can offer you a range of different debt relief options.
A chapter 7 bankruptcy can help relieve you of the responsibility of repaying your debts, which can be a welcome relief if outside circumstances have made it impossible for you to do so. One major concern, though, may be your car. This is especially true if you depend upon this transportation to get to and from work or school. The following guide can help you better understand your options for keeping the car.
When filing for Chapter 7 bankruptcy, one of the main things your attorney is going to need from you is your tax returns. Regardless of whether you work for someone else or you are self-employed, you need to be able to provide a couple years' worth of your returns. If you haven't filed them, you will need to do so for the attorney to have them on record and file them with your bankruptcy paperwork.