If you have been failing on your debt repayment, filing for the Chapter 13 bankruptcy is an option. Nowadays, more and more people have found a refuge of the Chapter 13 Bankruptcy. This type of bankruptcy is a method of re-organizing your financial capabilities through a three or five-year repayment schedule, as approved by the court. In this type of bankruptcy, unsecured debts like credit cards don't require full repayment. In fact, unsecured debts are usually wiped out of your record upon the filing of the bankruptcy petition.
Why should you file for the Chapter 13 Bankruptcy? Mainly, it is used to protect your properties from the garnishment of creditors. The bankruptcy lawyer needs to prove in the court the necessity of certain assets for the re-organization of the person. Second, Chapter 13 Bankruptcy protects the business or the business activities from disruption. It is a great option to explore the capability of the business to repay creditors without fear of total business garnishment to meet demands of debt repayment.
Moreover, with the aid of Chapter 13 Bankruptcy, you can eliminate interest of taxes you haven't paid for long time. For home mortgages, the bankruptcy petition can aid to protect the house from being foreclosed by creditors. Other loans you can negotiate easily with the Chapter 13 Bankruptcy includes car loan or auto insurance loans. For such, it is also an opportunity for you keep a clean slate of the credit report.
So how can you prepare to file for the Chapter 13 Bankruptcy?
Before you start thinking of filing a petition to the court, it is very important to check your options. Well, it is really hard to struggle financially, but if you can still find ways to handle the crisis, explore them before filing for bankruptcy. Now, if you have made up your mind to file the bankruptcy petition, hire a good bankruptcy lawyer. The lawyer must know the sections of the field to ensure winning the best deal.
There are several items you need to file. First, you need to file the Chapter 13 Bankruptcy petition to the court serving your area. You need to file the petition in the court that handles the area you are residing. Of course, you need to pay for the bankruptcy processing fees of the court. Second, you will be asked to file a repayment schedule or plan you want to be approved by the court. Discuss with your bankruptcy lawyer the best plan that is doable and measurable. You should be able to meet your needs before the repayment.
The repayment schedule will be discussed with the creditors when you meet them. They will be given by the court a chance to question the repayment plan. It is their right to know how you can pay the debt in the next three or five years. After the filing of the plan, as per approval of the court, you need to start repayment.
