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Get Chapter 13 Bankruptcy Help To Become Fully Debt Free

25th February 2011
By Raj in Bankruptcy Law
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There is a need for proper personal bankruptcy information if you truly intend to become debt free by filing bankruptcy. It has been found that many debtors who opt to file for personal bankruptcy under chapter 7 ultimately end up being qualified for chapter 13. Nevertheless, chapter 13 bankruptcy could be deemed to be the most apt debt solution, even much better than various debt settlement plans, for debtors that have higher incomes.

It is advisable for a debtor to get chapter 13 bankruptcy help for reorganizing his overall debts as well as finances. This could enable him to be completely debt free in a time span of 3 to 5 years. Typically, chapter 13 is a viable option for debtors who have higher incomes and are most unlikely to qualify for a chapter 7 personal bankruptcy as per new bankruptcy rules and regulations in the United States. Typically, chapter 7 allows bankruptcy filers to retain only exempted assets but chapter 13 permits debtors to keep all the valuable belongings and at the same enables repaying a small portion of debts to creditors through a court approved monthly repayment plan. Thus, the debtor enjoys legal protection provided by law.

Find Out If You Can File For Chapter 13 Bankruptcy

Debtors, whose primary aim is to seek debt freedom, need to take advantage of personal bankruptcy information that is provided by competent bankruptcy lawyers available online. This could be vital before filing chapter 13 since the bankruptcy court requires debtors to furnish evidence that monthly payments are affordable. Should the debtor have an irregular income flow or a low income, there are chances that his petition might get rejected. It has been observed that debtors who have received chapter 13 expert legal advice have been in a much better position to secure a favorable outcome for their chapter 13 bankruptcy cases. This is because the process of filing chapter 13 is a rigorous one and dealing with creditors in the court may not be an easy task.

Professionally qualified attorneys help you to thoroughly understand the subtle chapter 13 bankruptcy requirements. In a typical chapter 13 bankruptcy case, debts get categorized according to their priority and the foremost among them are child support, alimony as well taxes. Alternatively, mortgage debts or auto loans are considered to be secured debts and on the other hand, credit card debts or medical bills are classified as unsecured debts. If the debtor has any disposable income left every month, it could be diverted for paying off unsecured dues first. While secured dues also get eliminated in the process, it is not necessary for a bankruptcy filer to repay all the outstanding credit dues in a chapter 13. The remaining debts would get written-off and thus, the debtor becomes debt free.

However, as per new bankruptcy laws, if a debtor do not have enough surplus income he may not qualify for a chapter 13 bankruptcy. The reason is the bankruptcy filer would not be able to prove that the monthly payments are affordable as well as sustainable. Besides, in a chapter 13 there are certain limits prescribed for cumulative secured and unsecured debts. Nevertheless, if you are chapter 13 eligible, debt freedom is guaranteed.

To know more about chapter 13 bankruptcy rules, it is hereby suggested to use the expert legal services offered by trusted online bankruptcy attorney providers like BankruptcyOnly.
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