3 Things You Ought to Know about Chapter 13 Bankruptcy
Chapter 13 bankruptcy is available for debtors who want to address their creditor obligations, but do not want to go through liquidation. Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows a debtor to work through their debt in a way that takes their own financial limitations into account. With Chapter 13 bankruptcy, a debtor can clear many of their important debts without exposing any personal property to sale.
Although this bankruptcy requires more long-term planning and work than Chapter 7 bankruptcy, it can also provide debtors with the fresh start and new life that they are seeking. To learn more about Chapter 13 bankruptcy, contact the Joliet Chapter 13 bankruptcy lawyers of the Law Offices of Stuart B. Handelman at 815-722-2201 today.
Important Chapter 13 Considerations
It is important that debtors take necessary steps to ensure that they adequately understand their legal rights and obligations through the bankruptcy process. The following are three significant considerations.
#1: Chapter 13 bankruptcy puts the debtor before the creditor.
Chapter 13 bankruptcy helps a debtor work through their problems by allowing them to submit a debt repayment plan. This plan addresses creditor obligations, but generally only has the debtor pay whatever their disposable income can provide. Property loss is usually only in cases when a debtor wants to give up collateral on loan instead of paying it.
#2: Chapter 13 bankruptcy can deal with debts debtors cannot otherwise handle.
Once the Chapter 13 repayment plan is complete, a debtor may not be responsible for paying back that debt anymore. With debts that are not considered priority obligations or are not attached to collateral, debts that are paid through a repayment plan will often expire with the end of the plan.
#3: Foreclosure stops under Chapter 13 bankruptcy.
A debtor filing for Chapter 13 bankruptcy can stop the foreclosure process on their home. Although this does not eliminate the debt, the creditor cannot continue with foreclosure proceedings unless the foreclosure is actually complete by the time to debtor files for bankruptcy.
If you are struggling with collectors and creditors calling, we may be able to help you file for Chapter 13 bankruptcy. To discuss your legal options further, contact the Joliet Chapter 13 bankruptcy lawyers of the Law Offices of Stuart B. Handelman at 815-722-2201 today.