Wednesday, December 14, 2016
Who Is Eligible To File A Chapter 13 Bankruptcy?
If you are not eligible to file a Chapter 7 bankruptcy case, you should consider filing a Chapter 13. A Chapter 7, while more preferable due to its ability to eliminate all of your unsecured debt, is not the only choice when you have more debt than you can handle. A Chapter 13, which is like a consolidation of debts, allows you to eliminate most of your unsecured debt and you can also reduce the amount you owe on your car.
You are able to file a Chapter 13 bankruptcy under the following circumstances:
● You are an individual or a couple with more debt than you can pay.
● You are an individual or couple with enough disposable income each month, even if it not enough to pay your unsecured debts in full, but to put a little towards those debts after making payment on all of your secured debts.
● You own a small business, with debts taken out in your individual name, and you are not able to pay those debts or keep your business open.
While a Chapter 13 does last longer than a Chapter 7, and require repayment of at least some of your unsecured debts, it is still an attractive option if you are struggling financially. In a Chapter 13 case you are allowed to pay less than what you owe on your car and possibly even pay it at a reduced interest rate. Chapter 13 matters also handle mortgages in a favorable way, by letting the borrower pay out the arrearages over several months rather than up front, while still making the regular payments as they become due. Doing this will stop your mortgage lender from filing a foreclosure against you, which allows you to stay in your home while you sort through your money and come up with a budget. There is no better place to seek solace and find comfort than in your own home, and when you are dealing with the stress that goes along with having less money than you need each month, the comfort is well worth the work it takes to have a successful Chapter 13 plan.
If you have more questions about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.