Chapter 13 Bankruptcy FAQs

15 FAQs where found , 15 in this page

Who are the ideal candidates to opt for bankruptcy Chapter 13?

Low-income or struggling individuals, traders, retirees, professionals, housewives, and people who have a large income that allows them to pay for electricity, rent, insurance, food, etc. These individuals can pay the plan as set out under Chapter 13. It is not mandatory that the accounts are paid only with your salary. Bankruptcy lawyers will help you to recognize if you are a good candidate for Chapter 13. Learn More

When is Chapter 13 a better choice than Chapter 7?

Chapter 13 bankruptcy is preferable when: The individual that owes money wants to repay his or her debts in a specific amount of time. The person will lose prized, nonexempt property under Chapter 7. Under the mean test, there is no eligibility for Chapter 7. A person is ineligible for a Chapter 7 discharge because it was already received in 8 years. The debtor has a considerable amount of debts not dis-chargeable in Chapter 7 but still qualifies for Chapter 13 discharge. Learn More

How Much Money Do I Have To Pay If I File Chapter 13 Bankruptcy?

The money to pay depends on the debt and the monthly payment plan established by your attorney. These can vary according to your income. It also depends on the duration of the plan to make your payments. Learn More

Is There Any Advantage Of Filing For Bankruptcy?

With bankruptcy, many people have the opportunity to restore their economy and eliminate their debts. Through the bankruptcy court, greatly indebted individuals have the possibility to recover economically. Learn More

What Happens After I File For Bankruptcy?

After filing for bankruptcy you have the right to maintain those properties that were considered exempt; if you have inherited properties, you may have to sell some in order to start paying for the goods that are considered non-exempt properties and comply with the debt. Learn More

Can I Get Credit Cards After Setting Chapter 13 Bankruptcy?

Yes, you can get new credit cards. With bankruptcy, you will be able to restore your credit again long before you finish the set payments. You only need the approval of the bankruptcy court. Sometimes the interest on loans is higher due to the bankruptcy. Learn More

Are There Some Debts That Cannot Be Eliminated With Chapter 13 Bankruptcy?

With bankruptcy, a high percentage of debts are eliminated but there are some that depending on the established chapter cannot be canceled. These include student debts, certain taxes and fines, fraudulent customer debts, debts of food handling and custody, debts for driving under the influence of drugs and alcohol, debts that were not eliminated in previous bankruptcies, and so on. Learn More

Who is exactly a Chapter 13 Bankruptcy trustee?

A Chapter 13 bankruptcy trustee is an attorney who is selected by the United States Trustee. They must act as the trustee to the bankruptcy estate of every one who is filing for bankruptcy. In addition, his or her responsibilities are to make sure that the payment plan is followed, to collect the entire debtors payments, make the payments to the creditors, and finally control the case until it is closed. Learn More

Can I File Chapter 13 Bankruptcy for an LLC or Corporation?

Only individuals can file for Chapter 13 bankruptcy. This is because by law limited liability companies and corporations are consider a separate entity from the owner and its not consider an individual asset. When you file your taxes, they are both filed separately: personal and business. Other options can help business owners who wish to file for bankruptcy. Learn More

What is credit counseling and must I take it to file Chapter 13 bankruptcy?

In order to file Chapter 13 bankruptcy, the debtor must take a credit counseling course by an official credit counseling agency to complete the process. After completing the course, the debtor will receive a certificate that he or she must present. The price of this course is approximately $50.00 and it usually lasts around one hour in course time. It is absolutely necessary to take this course if filing for bankruptcy. If not competed, the case will be dismissed automatically. Learn More

Will my bank close my bank accounts if I file for bankruptcy?

It varies from case to case. In most circumstances if the bank or credit union has to withstand a loss, it will close any accounts. On the other hand, if the debtor reiterates the debt to the bank, then the bank may not take action. It is important to discuss the different options with your bankruptcy attorney. Learn More

What amount of time does it take for bankruptcy to remain on my credit bureau report? Am I able to get credit before that time runs?

Ten years is an estimate time in which bankruptcy remains in the credit bureau report of public records. Depending on the employment and income conditions, car and mortgage financing might be available with a considerable down payment. Also, credit card solicitations may also be taken into consideration. These steps can be accomplished once the discharge is entered. Learn More

If the debtor is unable to make Chapter 13 payments temporarily, what happens?

If the debtor is temporarily unable to make the payments from the payment plan due to certain situations, such as loss of employment, insured, or ill, the plan can be adapted to allow the debtor to make the payments when he or she can continue. If none of the reasons above are fulfilled or the debtor can no longer make the payments, then the case can be dismissed or adapted to a Chapter 7. Learn More

What happens to student loans in Chapter 13 Bankruptcy?

Your student loan can be paid with no interest as part of the payment plan. This is only accurate for Chapter 13 bankruptcy and not Chapter 7. Learn More

In a Chapter 13 payment plan, is credit card debt included?

In order for an individual to file under Chapter 13, repayment of all secured creditors before debts in its entirety must be completed. A part of the amount that is owed to unsecured creditors must also be paid. Learn More