Chapter 13 Bankruptcy
The past few years have resulted in record high levels of bankruptcy filings. As our economic situation continues to deteriorate and unemployment levels remain high, bankruptcy has become a reality for many people. Trying to keep up with financial commitments when faced with job loss or cutbacks is not a matter of choice and simply budgeting can fail to work in many circumstances. The day comes when there is simply no money to pay bills and the credit lines have long disappeared. At this moment, many individuals and families look up and ask "Maybe we should consider bankruptcy?" The first thing you should do is find out if you are eligible to file, what type of filing you should do and how this will affect your life. These questions should all be addressed by a bankruptcy attorney during your initial consultation.
Schottler & Associates take the time to ensure all client's questions are answered and that their concerns are fully addressed. Now is the time to review your finances, examine your assets and decide if bankruptcy is the right course of action.
What is Chapter 13 Bankruptcy?
For most individuals who are trying to find a solution to financial issues, the choices are simply either Chapter 7 or Chapter 13. The main deciding points are related to recent income levels and the level of asset protection desired. In some cases, the type of debt to be eliminated or handled may also play a deciding role.
Chapter 13 bankruptcy gives an individual the opportunity to reorganize their debt into an affordable repayment plan. This plan can extend for up to five years and in many cases, it allows for a significant reduction in the overall amount of debt. This is done according to the anticipated income of the individual and the debts are adjusted to meet that level. Oftentimes, Chapter 13 is chosen over eliminating debts in a Chapter 7 filing because of the desire to save an asset such as a home or other valuable item. It is possible that Chapter 7 could force one to liquidate or give up certain assets if their value exceeds the set exclusion amounts.
Chapter 13 is also not bound by strict income restrictions and so those not eligible under Chapter 7 have this as an option. Under an approved repayment plan, a person can get control over their debt and put an end to creditor harassment. The best option for your specific needs should be discussed with an attorney during your initial consultation.
Find out now if you qualify to eliminate much of your unsecured debt through a bankruptcy filing. Contact Schottler & Associates for a full review of your situation and an explanation of your options.