Assistance On How To File For Chapter 13 Bankruptcy
It can be also called reorganization of debt repayment
. The duration and the mode of repayment of the debt are subject to the decision of the bankruptcy court. Filing Chapter 13 Bankruptcy can be done by individuals only and not by business identities. Usually those who do not qualify for chapter 7bankruptcy, file for chapter 13 bankruptcy.
There are many factors that influence the successful filing chapter 13 bankruptcy forth the bankruptcy court. Some of these factors that help to determine the capacity of monthly payment are total debt, income, liquid assets and the total expenses. After taking all the factors into consideration the bankruptcy court will decide whether the debtor hast pay full, pay partially or not have to pay any amount. Most of the debts that remain unpaid with the help of this plan are considered discharged.
The income is one of the major factors influencing the filing of bankruptcy. Filing of chapter 7 bankruptcy is usually rejected because the income is found to be too high by the bankruptcy court, consequently the case is referred to filing chapter 13 bankruptcy. For successful filing of chapter 13 bankruptcy the income should be such that a part of the debt can be eliminated but it should not be such that the bankruptcy court feels that the debtor is in capacity to get rid of all the debt. Usually for successful filing of chapter 13bankruptcy the secured debt should not be more than $922,975 and the unsecured debt should not exceed $307,675. One can file bankruptcy online too.
Filing chapter 13bankrutpcy is not very easy. If it involved just submission of certain documents it would have been very easy, but that is not the case. One needs to file the documents in a proper format and at the same time present the case forth the bankruptcy court is such a way that the court is convinced that the debtor is really incapable of paying off the dues. In most of the cases the court rejects the application of chapter 13bankruptcy because it is not convinced that the debtor cannot pay the outstanding dues. It is always better to avail the services of chapter 13 bankruptcy attorneys to increase the chances of success.