If you qualify to file for debt reorganization under a Chapter 13 bankruptcy, you may enjoy a number of advantages that individuals who file for other forms of bankruptcy do not. Unlike Chapter 7, which focuses on liquidating assets to allow a debtor with little or no income to discharge his or her debts, Chapter 13 allows those who have income to repay debts at a more manageable pace, potentially discharging some portion of the debt.
One of the most attractive aspects of a Chapter 13 bankruptcy is that the procedure allows those who qualify to keep their personal property, as long as they can complete the repayment plan while abiding by its particular restrictions and timelines. If you suspect that Chapter 13 may resolve your financial difficulties, do not waste any time moving forward. The sooner you begin your own Chapter 13 procedure, the sooner you can get out of debt and back on track, all while maintaining ownership of your property.
Each state maintains its own laws to determine what property a person may keep and what he or she must forfeit, making it very important to carefully navigate the entire process. Chapter 13 intended to provide relief to those who can repay debts with their income yet need some structure to do so. But if your estate exceeds a certain value, a court may require you to forfeit some of it.
Likewise, you may have to forfeit property over a certain value in some instances. Individual state laws indicate value caps to some kinds of property, requiring those who file to forfeit certain belongings with value that exceeds those caps.
In general, you can expect some flexibly to keep your
- Automobile or other form of transportation
- Personal belongings
- Household appliances and furniture
Are you prepared for your repayment plan?
In order to properly execute your repayment plan and put a halt to collections efforts by your creditors, you must carefully execute a Chapter 13 procedure. This is not simple, and presents numerous opportunities for error if you are not meticulously attuned to all the details.
You may be within reach of the financial relief that you need if you approach the matter wisely and use the resources available to keep your eyes on the goal. Your repayment plan may last for a three or five years, so be mindful to seek out all the guidance you need to keep you on track and ensure that you have the tools you need to finish the process and keep your rights secure.