When it comes down to chapter 13 bankruptcy there is probably a lot for you to learn and take in. It is very important to understand that chapter 13 bankruptcy is very different from chapter 7 bankruptcy. Chapter 7 bankruptcy is mainly about getting rid of debts, liquidating assets and having a fresh start.
Chapter 13 bankruptcy is more like debt consolidation where you will get a payment plan that should clear your debt within three to five years; most likely three. Both chapter 7 and chapter 13 bankruptcy will require credit counseling within 180 prior to filing and both will be reported on your credit report. One of the biggest pros about chapter 13 bankruptcy is that you can save your home from foreclosure. There is also the potential to resolve student loads and unpaid taxes; unlike chapter 7 bankruptcy.
You will need to have a detailed list of your income, all expenditures, assets and debts when filing. You will have several fees to pay for administrative and filing purposes. A trustee will be appointed to be the median between you and your creditors just like chapter 7 bankruptcy.
How do you know if you qualify? You may be an individual, self-employed or a small business owner. You must not exceed $360,475 in unsecured debts and $1,081,400 in secured debts. Secured debt are things that involve an asset directly such as a mortgage or car loan. Unsecured debt is a debt that is based on your agreement to pay only; a credit card is a great example of this.
If you think that you are eligible for chapter 13 bankruptcy and prepared to file it is important that everything is filed perfectly or you will be a great financial risk. Contact Universal Finance for information about chapter 13 bankruptcy and how they can help you; it can make all the difference!
