Chapter 13 Bankruptcy Questions
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The Chapter 13 bankruptcy process can seem confusing to some people, and most people have a number of questions about Chapter 13 before they file.
To help you get a handle on one of these types of bankruptcy, we discuss a few common Chapter 13 bankruptcy questions below.
A local bankruptcy attorney can also evaluate your case and answer questions about your Chapter 13 bankruptcy case. Our sponsoring attorneys can be your resource if you need a helping hand. Connect with a bankruptcy attorney near you simply fill out the free case evaluation form below to get started.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a form of personal bankruptcy that enables individuals to reorganize their debts and repay them during a court-protected plan over three to five years.
While this reorganization goes on, property owners can often keep their houses, cars and other assets as a part of the process. Chapter 13 bankruptcy helps people get out of debt and get back on track financially.
Who is Chapter 13 Bankruptcy Designed For?
Chapter 13 bankruptcy often works effectively for those who have seen a manageable debt load spiral out of control. Many Chapter 13 filers own a home, and may risk losing it to foreclosure.
They may have lost their jobs, taken on debt or costs because of illness or they have other large and unexpected expenses. However, most Chapter 13 filers still have income coming in.
The Chapter 13 bankruptcy plan allows them some room to negotiate unexpected financial shortfalls while keeping property.
How Long Will a Chapter 13 Bankruptcy Take?
A Chapter 13 bankruptcy typically takes long than the Chapter 7 counterpart, because of the nature of reorganizing and paying back debts owed to creditors.
Generally a debtor has 3 to 5 years to repay debts. Debtors get to keep some of their property during this process, and the debt does not gather interest.
And while you should be eligible to receive the protections of the automatic stay as soon as you file your bankruptcy petition, the repayment plan does not typically begin until your creditors have had the opportunity to review and approve of the plan, a process that usually takes a few months.
More Questions? Ask a Bankruptcy Attorney
These may be only a few of the questions you have about bankruptcy. Luckily, you can connect with a bankruptcy attorney in your area today for free.
To contact a local bankruptcy lawyer for a free case evaluation, and to learn more about your Chapter 13 bankruptcy options, click below to get started.
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