ArticleZones.com » Finance » Bankruptcy » Understanding Chapter 13 Bankruptcy
View PDF | Print View
Article By: JosephThen
Total views: 6
Word Count: 471
Understanding Chapter 13 Bankruptcy
The Chapter 13 Bankruptcy
Chapter 13 can be filed by individuals. It can only be filed by an individual who has a steady and secure source of income.
What exactly is Chapter 13? Chapter 13 is actually a repayment plan. Individual will work together with the court, and creditor to come out with a repayment plan which is based according to the individual's income.
Steps in Filing Chapter 13 Bankruptcy
So how do you go about filing for bankruptcy? First and foremost, you need to see a credit counselor to assess your financial status before the paperwork can begin.
After that process is done, your income and debts are gone through and a payment plan will be drawn out according to your income. However, both the creditors and you, and most importantly the court have to agree with the plan.
You will have to file a lot of paperwork and attend court hearings. It is often smart to have a lawyer who can help you with negotiations with creditors. The process can be frustrating, but you are under the watchful eye of the court and also protected by the court, so you have nothing to worry about. The court will help you to reach a repayment plan you can live with.
The process of fling for Chapter 13 can be time consuming but don't worry about that because as long as you are still undergoing the process of filing for Chapter 13, your creditors will not be able to collect any form of debts from you.
What You Need to Know
After you have read all these, you may be wondering why you should file for Chapter 13 if it is only a repayment plan. Well, my answer to that is so that you can get protected by the court. Going to court and getting the court involved is not always a bad thing.
Why court involvement? By having court involvement, you can have more protection and options. The court will ensure that you can afford the repayment. You are considered a willing party instead of being demanded for unreasonable payment plan you cannot afford.
Other than that, another advantage of filing for bankruptcy is that you are protected from creditors when you file for bankruptcy.
Your goal? Start utilizing the knowledge you have acquired her but you also have to remember that there are many negative effect of bankruptcy so, is always best to avoid it. Try working together with your creditors if you feel that you are facing financial problems.
Article Source: ArticleZones.com
About the Author
If you are declared a bankrupt, it means that you have problems in taking loans in the future. Worst still, the bankruptcy record will stick with you for up to 10 years! Get to know how you can avoid Bankruptcy by going to this website today ==> http://www.outofbankruptcy.info
Comments
No comments posted.Add Comment
You do not have permission to comment. If you log in, you will be able to comment.More articles in this Category
1. Important Points of Chapter 7 Bankruptcy2. Understanding Chapter 13 Bankruptcy
3. Fixing Your Credit Score After Bankruptcy
4. Facing Bankruptcy - Is Credit Counseling The Best Option?
5. Personal Bankruptcy- Choosing Ch7 Or Ch13 Bankruptcy