Filing for Chapter 13 Bankruptcy

Filing for Chapter 13 Bankruptcy

Bankruptcy is inevitable as anything can happen to a person’s job or business.

However, there are options to take when a person becomes bankrupt. Filing for bankruptcy is one option as it can help the debtor eliminate his debts depending on the type of bankruptcy he is filing for. To some, filing for Chapter 13 Bankruptcy is the solution to their financial struggles.

ď śIt is important to know what Chapter 13 Bankruptcy is. It is an alternative to Chapter 7 Bankruptcy in the sense that those who cannot qualify for Chapter 7 Bankruptcy may be eligible for Chapter 13 Bankruptcy. ď śTo qualify for such a case, the debtor must be able to repay his creditors in due time preferably within 3 to 5 years.

His secured debts must not be more than $750,000 and his unsecured debts must not exceed $250,000. Corporations and partnerships cannot file for Chapter 13 Bankruptcy.

ď śThe debtor must then file for a petition in a bankruptcy court within their area.

Along with this, he must submit all pertinent documents that the court would need during the proceedings. ď śAsking the help of a bankruptcy lawyer can make the job easier. Once the petition is filed, creditors cannot run after the debtor while the case is ongoing.

ď śUnlike Chapter 7 Bankruptcy which would totally eliminate all of the debtor’s financial obligations, Chapter 13 Bankruptcy would require a repayment plan to assure that he can pay his debts within a given period of time.

Also, the debtor must attend the creditor’s meeting which would take place within 20-50 days after filing the petition. Furthermore, he must attend the confirmation hearing wherein the court judge would determine if the repayment plan is feasible.

More importantly, the debtor must adhere to the repayment plans and start making payments as soon as possible.

For more information contact the law offices of Jeffrey A. Cancilla & Associates 714-702-5295. Read more here: www.slideshare.net/jeffreycancilla