Filing Chapter 13 bankruptcy allows a petitioner to restructure and reduce debt through a repayment plan. The goal is to pay off debt through a manageable monthly payment. The most advantageous aspect of the Chapter 13 bankruptcy is that a petitioner doesn’t surrender any property to the bankruptcy court to pay creditors.
Do You Need More Time to Pay Off Your Debt?
If you just need more time to pay off your debt, you may be a good candidate for Chapter 13 bankruptcy. Sometimes petitioners just need a little more time to pay their bills. Instead of facing large sum demands for full payment, the Chapter 13 payment plan allows petitioners to approach their debt through small, monthly installments that are based on the amount the petitioner can actually afford to pay. The payment plan splits up unmanageable debt into smaller, approachable payments.
Do You Make Too Much Money to File Chapter 7 Bankruptcy?
In order to file Chapter 7 bankruptcy you must pass the Means Test. The Means Test is basically a mathematical equation to determine if you make enough money to pay your bills. If you do not pass the Means Test, you are not eligible to file Chapter 7 bankruptcy, and you could be a good candidate for Chapter 13 bankruptcy.
Are You Facing a Home Foreclosure or Vehicle Repossession?
If you are facing a foreclosure on your home, you may be a good candidate for Chapter 13 bankruptcy. Most consider Chapter 13 to be the best way to prevent mortgage lenders from foreclosing on a home or repossessing a vehicle (or other secured property). Since you are not discharging your debt in Chapter 13 bankruptcy, you keep all your possessions, including your car and your home. However, the Chapter 13 bankruptcy does issue the same automatic stay as the Chapter 7 bankruptcy, so all collection activity (including foreclosure, and repossession) cease immediately when the case is filed.
If you have questions about Chapter 13 bankruptcy and whether or not you are a good candidate for a Chapter 13 bankruptcy filing, we can help. Find out more about getting a fresh financial start through bankruptcy. Get in touch with Kenneth C. Rannick P.C., Tennessee, and Georgia bankruptcy attorney as soon as possible.