Bankruptcy Attorneys Guide To Filing For Chapter 13 Bankruptcy

SEO TITLE: Bankruptcy Attorneys Guide To Filing For Chapter 13 Bankruptcy Heading 1 (H1): Bankruptcy Attorneys Helps You Face Chapter 13 Bankruptcy Chapter 13 bankruptcy is the next alternative if the petitioner does not pass the means test in Chapter 7. Hire an experienced bankruptcy attorney to increase your chance to have a better outcome.

When people struggle to make ends meet, bankruptcy can seem like the best option. Filing for bankruptcy can give individuals a fresh start by wiping out their debts and giving them a new financial beginning.

However, before you decide to file for bankruptcy, it is vital to hire a bankruptcy attorney to help you understand the different types of bankruptcy available. This blog post will discuss Chapter 13 bankruptcy in detail.

This post will also answer common questions such as "What is Chapter 13 bankruptcy?" and "What are the benefits of filing for Chapter 13 bankruptcy?" This post will also help you determine whether or not Chapter 13 bankruptcy is the right choice for you.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a type of bankruptcy that allows individuals to reorganize their debts and repay them over time. Under Chapter 13

bankruptcy, debtors must propose a repayment plan to their creditors.

The bankruptcy court must approve this repayment plan before it can take effect. The repayment plan will last for three to five years when the debtor must make regular payments to their creditors. After the repayment period is over, the bankruptcy court may discharge any remaining debts.

The Best Effort Requirement For Chapter 13 Bankruptcy One of the critical requirements for Chapter 13 bankruptcy is the "best effort" requirement, which means that debtors must make their best effort to repay their debts. In other words, debtors must use their disposable income to make payments under the repayment plan. If a debtor does not have enough disposable income to make payments, they may still be able to file for Chapter 13 bankruptcy by reducing their expenses or increasing their income.

Types Of Debts That You Can Repay In Chapter 13 Bankruptcy There are two types of debts in Chapter 13 bankruptcy: priority and nonpriority unsecured debts.

Priority Debts Priority debts are debts that you must pay first. These include child support, alimony, taxes, and bankruptcy filing fees.

Non-priority Unsecured Debts Non-priority unsecured debts are debts that do not have to pay back in full. These include credit card debt, medical bills, and personal loans.

How To Calculate Payments On Non-Priority Unsecured Debts In Chapter 13 Bankruptcy?

It would help if you determined your disposable income to calculate your payments on non-priority unsecured debts. Disposable income is the amount of money you have left after you pay your priority debts and living expenses. Once you know your disposable income, you can use it to make a payment plan for your non-priority unsecured debts.

If you consider filing for Chapter 13 bankruptcy, you must speak with experienced bankruptcy lawyers. Austin bankruptcy attorneys can help you understand the bankruptcy process and determine if Chapter 13 bankruptcy is right for you.

What Are The Benefits Of Filing For Chapter 13 Bankruptcy?

Chapter 13 bankruptcy has several benefits. First, Chapter 13 bankruptcy stops creditors from taking collection actions against debtors, which means that creditors cannot call or send letters demanding payments.

Second, Chapter 13 bankruptcy gives debtors time to catch up on pastdue payments. Third, under Chapter 13 bankruptcy, debtors can keep specific property they might lose in a Chapter 7 bankruptcy. Fourth, Chapter 13 bankruptcy may help improve debtors' credit scores.

The Lincoln-Goldfinch Law Firm If you are struggling to repay your debts, you may wonder if Chapter 13 bankruptcy is right for you. You should speak with Austin bankruptcy attorneys to discuss your options and determine if Chapter 13 bankruptcy is right for you. a bankruptcy attorney can help you with the bankruptcy process and determine if Chapter 13 bankruptcy is right for you.

The Lincoln-Goldfinch Law Firm has bankruptcy lawyers who have experience in Chapter 13 bankruptcy. They can help you navigate the legal procedures and determine if Chapter 13 bankruptcy is right for you.

Contact them today to schedule a free evaluation.