Abcs Of Chapter 13 Bankruptcy

There is then a confirmation hearing in a court of law. At this meeting the proposed repayment plan will be reviewed and it will be determined whether or not the plan meets the Bankruptcy Code. The biggest difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy is that in 13 individuals keep their property and assets and make payments based on their income in order to pay off creditors.

With this type of bankruptcy the debtor does not see his debts erased but rather must make appropriate payments until the plan is achieved and a discharge is received. While the debtor is in repayment he will be protected by things such as garnishments, lawsuits, and any other type of action by creditors. More debts are eliminated under the Chapter 13 plan than under the Chapter 7 plan.

You need to evaluate your financial situation and determine which bankruptcy is the best option for you. You will want to talk with a lawyer to get some guidance to ensure you are on the right path and making the best decisions for you. After reviewing your financial situation, your assets, and your income stream you will be able to make the best decision. Make sure all your questions are answered before going ahead, though.

He is a freelance writer. Arizona bankruptcy lawyers can help you handle a chapter 13 bankruptcy and walk you through the process so everything goes as planned as goes as quickly as possible. Phoenix, Arizona bankruptcy lawyers will explain to you that by filing this type of bankruptcy you make a plan to pay back your debts over a period of time, which is usually three to five years.

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