Bankruptcy has jumped in numbers because of the economy in the last few years. Some families have no choice but to file bankruptcy because they are in a financial hardship, they are stuck. Bankruptcy is never an easy decision for anyone.
A wage earner’s plan is what chapter 13 bankruptcy is called. It helps income earners to create a plan to repay all or part of there outstanding debts. In this chapter they are given 3 to 5 years to make installment payments to creditors. The length of time you spend paying your debts is determined by your income vs the state median. In no case though can you be forced to pay longer than five years. During the time you are making payments, creditors are not aloud to continue collection against you.
Chapter 13 offers a lot more benefits than filing chapter 7 bankruptcy. Chapter 13 gives individuals the opportunity to keep there homes from going into foreclosure. As soon as you file chapter 13, the foreclosure of your home will stop. Nevertheless, the home owner would still need to make there scheduled mortgage payment and taxes.
Any employed individual , even self-employed or business owners can file for chapter 13 bankruptcy ,as thong as there unsecured debts are less than 360,475 and the secured debt owed is less than 1,081,400.
Wichita Best Chapter 13 bankruptcy lawyer can be contacted to find out some of the specifics. A Bankruptcy attorneys can explain a great deal more of the red tape that accompanies bankruptcy. When it comes to your finances you want to make sure it is done correctly. The reason for bankruptcy is to help people start over. Good people make mistakes and get themselves into a financial hole. Chapter 13 is there to give families an option. This option is a great opportunity to learn to budget and take responsibility of your finances. Take some time and weigh out the pros and cons. If you feel you are in over your head, there are options available for you. Contact a lawyer and have them guide you in the direction that you need to go.