Bankruptcy attorneys want you to understand that there are different chapters within bankruptcy law. Each business or individual must know what chapter they fall under prior to filing for bankruptcy. It is highly advised that if you are in danger of filing for bankruptcy that you hire a bankruptcy attorney to help you. Bankruptcy law can be difficult to understand and even more difficult to navigate. It is an attorney’s job to help you understand exactly what you are going through.
Chapter 13 bankruptcy is also known as reorganization bankruptcy. According to the United States Court; “The chapter of the Bankruptcy Code providing for adjustments of debts of an individual with regular income.” This means that you will be able to adjust your debt, keep your property, and pay over a time span of 3-5 years. This means that you will not have to liquidate your assets to pay your debt. Filing for chapter 13 will immediately stop foreclosure proceedings. Many individuals who file for chapter 13 bankruptcy are denied because they make too much money in a calendar year. Chapter 13 bankruptcy is also unique in the fact that all payments will be made to trustee who will then distribute them to the appropriate creditors.
Your bankruptcy attorney will tell you that chapter 13 bankruptcy is for individuals who are self employed and owe less than $383,000 in unsecured debt and less than $1,149,600 in unsecured debt. In order to be eligible for Chapter 13 you must have received credit counseling from an accredited agency.
Galarza Law Firm can help. We understand that bankruptcy can be confusing. Our bankruptcy attorneys can help you through each step of the process. You are no longer alone in your debt struggles.