There is a fair amount of information on chapter 13 bankruptcy that all consumers should be aware of, and particularly if you have a business or even if you are just planning to start up a business in the future, this information is beneficial to you.
Chapter 7 bankruptcy information also applies here, but the chapter 13 bankruptcy information is going to be the most important for you to be well informed about.
Things You Should Know
When talking about a chapter 13 bankruptcy filing procedure it refers to the law that allows a borrower with a limited amount of debt and a stable income to pay off their bills under a court approved repayment plan over a 30 to 60 month period. So from this chapter 13 bankruptcy information we can determine that only if you have a little amount of debt will you be able to go through under the chapter 13 bankruptcy law.
If you have horrific financial problems on the other hand, then you will need to determine what other options are available because you may not be accepted for this. The plan is that you would be able to pay off all your debts under a 90 month period, and so if you owe hundreds of thousands of dollars clearly you are probably not going to be able to do that.
After looking at some of your financial statements and depending on how willing you have been to pay your bills in the past the judge will make a decision. They will take all of this into consideration and use it to determine whether or not they want to agree to put you on a repayment schedule.
Another important piece of chapter 13 bankruptcy information entails what chapter 13 enables, and this is that it permits people with a regular income to develop a plan to repay all or part of their debts. It offers many advantages, particularly over liquidation under chapter 7. Perhaps most notably of all, chapter 13 gives you the opportunity to save your home from foreclosure. This is particularly consequential if you have a family, as you have probably lived in your home for some time now and definitely want to shun foreclosure on your home.
An additional major benefit of chapter 13 is that it lets you defer secured debts and extend them over the life of the chapter 13 plan.
Even though bankruptcy can undoubtedly be accommodating in some cases, you should realize that it is not just a one way ticket out of your monetary trouble. You may not have to deal with all the creditors and the debt as you once did, but you will get a big hit on your credit and you might have most if not all of your nonexempt possessions liquidated, and this consists of any businesses that you may possess and any credit cards that you may have. It will also remain on your credit report for up to ten years.