For many Americans, the word “bankruptcy” has a negative connotation since it denotes extreme financial difficulties. The truth is that filing for bankruptcy can give substantial debt relief and help some debtors escape foreclosure and asset seizure by creditors. If you’re trying to figure out how to get out of your present financial bind, the appropriate Orange County bankruptcy attorney can be a huge help. Chapter 13 bankruptcy, in many situations, provides the most freedom.
Compared to the other bankruptcy varieties accessible in the United States, Chapter 13 bankruptcy can provide several advantages. Before calling a bankruptcy lawyer for particular counsel regarding your circumstances, consider the following information if you’re unclear if Chapter 13 bankruptcy is right for you.
The Advantages Of Filing A Chapter 13 Reorganization Plan:
The most common kinds of bankruptcy in the United States are Chapter 13. Chapter 13 offers the most freedom to the filing party of the three alternatives, allowing them to avoid the unfavorable characteristics of other types of bankruptcy. Unlike Chapter 7, which compels the bankrupt to liquidate all qualified assets to satisfy creditors, Chapter 13 protects the debtor’s property in the vast majority of situations.
It will entrust your financial affairs to a designated trustee in Chapter 13 bankruptcy, and most Chapter 13 trustees are extremely sympathetic when it comes to debtor repayments.
Chapter 13’s Drawbacks Include:
While Chapter 13 bankruptcy has several considerable advantages over other forms of bankruptcy filings, it also has significant disadvantages. To begin with, repayment of debts reorganized under a Chapter 13 agreement can take five years or longer.
Under the terms of your Chapter 13 settlement, you may be allowed to preserve your home, prevent foreclosure, and prohibit creditors from pursuing collection actions against you. Still, you will have to pay your debt repayments out of your “disposable” income. This implies that any money you make after paying your essential living expenses and obligations would be forfeited under a Chapter 13 bankruptcy.
Suppose you are being hounded by creditors and are concerned about losing your house. In that case, you must contact an experienced bankruptcy law company like Bradford Law Offices, PLLC, as soon as possible. To learn more, click here.