A Chapter 13 bankruptcy is a form of bankruptcy that enables people to preserve their assets, such as their property while repaying creditors over a period of three to five years. You can only file for bankruptcy if you meet certain requirements.
Having a bankruptcy attorney can help you get through the whole process more easily. Here is everything that happens to property when Chapter 13 bankruptcy is filed.
Everything You Need to Know About Assets When Filing for Chapter 13 Bankruptcy
After you file for bankruptcy, the court will assign you a bankruptcy trustee, who will be there to oversee the whole debt repayment plan and also provide credit counseling. Your property will be protected from any seizure by unsecured creditors. Bankruptcy filing offers protection for both your real and personal property.
Retention of Property
When you file a Chapter 13 bankruptcy petition, you will be able to keep your property while the secured debt or unsecured debts are being repaid to the creditors.
To file for bankruptcy under Chapter 13, you need to create a repayment plan that will enable you to pay back all the debts within 3 to 5 years. The repayment plan needs to be authorized by the bankruptcy judge and court. Furthermore, the plan should outline the schedule for all secured debt repayments as well as any mortgage.
Once you have repaid all the secured debt, any unsecured debts like medical expenses and credit card debts will be discharged.
Benefits of Filing for Chapter 13 Bankruptcy
When you file for bankruptcy, this will give you some time to get your finances in order. After the bankruptcy court releases its judgment, you will have more time to repay your debts under this plan.
If the terms of the bankruptcy settlement require you to repay the debt personally, Chapter 13 will shield your loan cosigners from any collection attempts that may be made.
If you file for bankruptcy after a Chapter 7 discharge, you might be able to get a lower payment on any debts that are still owed to you.
Who Should File Chapter 13?
People tend to think of bankruptcy court as the last resort when all other options have been exhausted and it appears that they will never be able to pay off their obligations. However, even if filing for bankruptcy isn’t the end of the road, this is the option that comes the closest to a smooth landing.
If you file for Chapter 13 bankruptcy, you can keep your home as long as you can pay back your debts in the way that the bankruptcy court has approved.
You’ll have three to five years to pay off your debts while contributing 100 percent of your disposable income to the cause.
However, the Chapter 13 option gives you the ability to discharge unsecured debt, such as payments for credit cards, while at the same time allowing you to catch up on mortgage payments or car loans. A trustee will also keep an eye on you. The court selected this person to be in charge of collecting and disbursing your payments.
Is It Worth It?
People who file for bankruptcy under Chapter 13 are allowed to keep their property while making payments to their creditors. The period given is usually three to five years. Thus, anyone who is having problems managing their debt can benefit from filing for bankruptcy under Chapter 13 because it shields their property from the claims of creditors.
Not only that, but it also enables them to keep possession of their property. If you are thinking of filing for Chapter 13 bankruptcy, you must consult with a bankruptcy attorney. They will help you look into your choices and figure out whether or not this is the best decision for you.
Siddons Law is the Best Choice for Your Bankruptcy Needs
Bankruptcy is a complicated and stressful procedure, but it may be a new beginning toward financial security if you have the correct help. Because of this, it is very important to choose an attorney who specializes in bankruptcy law. And when it comes to experienced, compassionate representation, Siddons Law is a clear choice.
At Siddons Law, our team of bankruptcy lawyers is committed to assisting individuals and families in getting the necessary debt relief by guiding the bankruptcy process. We are aware that every situation is different, which is why we collaborate closely with our clients to create customized strategies that cater to their specific requirements. From start to finish, we are committed to providing the highest level of service and support.
Our bankruptcy lawyers will assist you in navigating the legal procedure and protecting your assets, regardless of whether you are facing wage garnishment, foreclosure, or an overwhelming amount of debt. Our firm is dedicated to defending the legal rights of our customers and assisting them in obtaining the debt relief they have earned.
With our expertise and commitment to your case, you can trust that you’re in good hands at Siddons Law. Contact us today at 610-255-7500 to set up a meeting and learn more about how we can help you become financially independent.