There’s a lot to be said when it comes to taking care of the details around your finances. Dealing with debt can be really stressful and you have a lot of things that you need to try and take care of. Chapter 13 bankruptcy is one way to deal with it. But, what is chapter 13 and how can it be helpful to you?
There are some specific qualifications that are related to chapter 13 and who is able to apply for it. The person who is applying for a chapter 13 reorganization should have no more than $396k in debt. There are a couple of fees that are associated with applying for chapter 13, and it ends up costing approximately $335 to apply for it.
Reorganizes your Debt into Reasonable Payments
One of the most important things that chapter 13 does (especially when you compare it to chapter 7) is that it completely reorganizes your debt into a payment plan that is going to fit within the budget that you have. The plan will likely be put together for anywhere from 3 to 5 years, depending on the amount of debt that you’re dealing with and what you’re going to be able to pay back.
Is on Your Credit Report for Up to 7 Years
One of the things that you need to be sure of is that you understand just how long that this is going to be on your credit report. Depending on what sort of debt you’re dealing with and the terms of your specific bankruptcy case, you want to be sure that you know how long it’s going to be on your credit report. In most cases, you will have the mark of bankruptcy on your credit report for 7 years.
Discharges Additional Debt if You’re Good with Payments
The biggest thing about chapter 13 is that you’re set to make certain payments at certain times, for a certain length of time. If you stick to your end of the deal and take care of things, then your debts are going to be cleared at the end of the payment period. The whole thing will be laid out for you in regards to the situation and, as you look at what may be involved and how you want to do things, your lawyer can help you to have a more solid understanding of what it is that you need to do.
As you can see, there it a lot that you need to know and take care of when it comes to bankruptcy, specifically with chapter 13 cases. You want to be sure that you talk with a lawyer about what it is that you can do and how you may want to proceed with a bankruptcy case. When all is said and done, you’ll have more solutions and you can be sure that you’re able to do as much as possible in order to get ahead of bankruptcy.