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A Guide for Declaring Chapter 13 Bankruptcy

26th October 2010
By Herschel in Bankruptcy Law
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In bankruptcy laws, there are actually two major selections to consider and these are the chapter 7 and chapter 13 of the bankruptcy law. The decision in which option to choose depend on your situation and of course, the amount of money that you owe.

If your debts are so huge despite having a steady source of monthly income, then chapter 13 of the bankruptcy law is a good option for you. When filing for this kind of bankruptcy, it is necessary to file a legal petition in the court. It is only after filing the petition that you will be permitted to make full or partial payment to your lenders. The usual payback time under this bankruptcy law runs from 3 to 5 years.

In contrast to chapter 7, your properties will not be affected in any way if you will choose chapter 13. You see, this new law is beneficial because, in the past, creditors automatically take over the properties of their lenders after default.

Here is a simple procedure for filing this chapter of the bankruptcy law:

1. Find a good lawyer and discuss your problem. After supplying the lawyer about your current financial status, he will most probably devise the best option for solving your difficulties. He will also be able to advise you whether you have to file for bankruptcy or not.

2. Be sure that you understand about the law with regards to this chapter before finally decoding to go for it. Research about its ups and downs so you will able to weigh down if it is for you.

3. When you have decided to go on, file a petition in the court.

4. When filing, provide full details about your liabilities, income, assets, and expenditures.

5. Be sure to settle all the lawyer and court fees.

The best about filing bankruptcy petition is that after you have filed them, your creditors will no longer be allowed to sue or make collection calls to you anymore.

Lastly, getting back again after hardships and difficulties experienced from soaring debt is not easy if help like the chapter 13 bankruptcy law is not available. So, recover easily by inquiring about the options which you can avail to be in better financial position once again.

Are you looking for more information regarding chapter 13 bankruptcy? Visit today!
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