All About Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows the individuals to undergo financial resurrection administered by federal bankruptcy court.

What is chapter 13 Bankruptcy?

Chapter 13 bankruptcy gives the debtor a chance for paying back partial or entire debt with lowered or zero interest rates. You dont have to liquidate your assets to pay off your debts like you do in chapter 7. Chapter 13 bankruptcy allows the debtors to reorganize their debts in order to repay their debts with the income that they are going to earn in the future. If you have a regular source of income and he can afford to pay back the debt according to the plan, going through chapter 13 Bankruptcy is relevant. The code gives a period of five years. During this period debtors have to pay back their creditors. Though your interests are secured by the bankruptcy attorney, the whole process will be administered by the bankruptcy court.

How chapter 13 bankruptcy works?

Even though the debtors are allowed to keep all their exempt and non exempt assets, the bankruptcy court acknowledges a new zero interest repayment plan. A written plan is drafted stating every transaction that will take place during the specified period. The repayment process has to start within a month or 45 days after the case begins. Unlike the chapter 7 bankruptcy when you pay the trustee, who in turn transfers the payment to creditors, in the chapter 13 Bankruptcy, you directly make the transactions with the creditors.

However, in certain cases, the trustee can help you distribute the money among all the creditors as stated in the plan. As per the laws, the creditors have to rigorously follow the repayment plan acknowledged by the court. Even the creditors are not allowed to collect any kind of claims from the debtors. The chapter 13 Bankruptcy attorney will bring the fresh repayment plans that will best suit your needs.

The major advantage of chapter 13 over chapter 7 Bankruptcy in Dallas is the complete discharge option that you get. And you also dont have to liquidate your assets that you do as in Chapter 7 bankruptcy. In case the debtor makes all the payments as mentioned in the plan, he is then offered with a full discharge option. There can be few exemptions at this moment and your attorney will advise you on that.

Another big merit is that even if your creditors disapprove the repayment plan, it will still be drafted. But you need to have the courts approval. However on a fair note, the court permits the creditors to file an objection if they have any.

Chapter 13 bankruptcy in Dallas can be a big relief because not only you will be getting rid of your hefty debts but can also secure yours assets from mortgage. When you need any help with filing Chapter 13 bankruptcy, you can refer to some good bankruptcy lawyer. He can surely help you know your options and can guide and represent you in the court and bankruptcy proceedings.

Looking for a Chapter 13 bankruptcy lawyer in Dallas, log on to: http://bankruptcy.legalhelp.org

by: Harvard McIntosh

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