Home » Articles » Finance / Wealth

Can't Afford A Chapter 13 Bankruptcy, Convert To Chapter 7

Can't Afford A Chapter 13 Bankruptcy, Convert To Chapter 7
"""After declaring bankruptcy, most Americans would like to believe the worst is behind them. In today's ever-changing economy, this is not always the case. Since the 2005 amendments to the bankruptcy code and the 2007 collapse of the real estate market, many individuals have filed for Chapter 13 bankruptcy. Due to the unprecedented decline in the American real estate market, Chapter 13 has discovered a niche market. People who earn too much to qualify for Chapter 7 bankruptcy determine that Chapter 13 is the best option for keeping the family residence. The only difficulty with this Chapter 13 bankruptcy is not coming up with a manageable payment plan, but rather maintaining it. A Chapter 13 plan takes three to five years to complete. As everyone knows, that is a lengthy period of time during which a lot can occur. Due to the high unemployment rate and widespread layoffs, nobody knows when their head may be on the chopping block.

The good news is that there are always options available when a person confronts difficulties with this type of bankruptcy filing. You or your spouse could be laid off, or a member of your family could contract a serious illness. Any of these circumstances could have a devastating effect on the financial health of a family. When changes occur, it is recommended to contact your bankruptcy attorney as soon as possible. Waiting could result in an inability to make Chapter 13 plan payments, leading to dismissal. A bankruptcy lawyer understands how to modify the bankruptcy plan. However, they are not mind readers, so if you do not contact him, they will not know until it is too late.

If your financial difficulties are only transitory, your bankruptcy attorney may petition the court to modify the payment plan to excuse the missed payments. If it will be for a lengthier duration, they may also request a reduction in payments until you can get your life back on track. A bankruptcy attorney may also advocate for a reduction in the amount paid to unsecured creditors, which would substantially reduce payments. The Chapter 13 Bankruptcy Trustee is aware that life circumstances can change and does not anticipate that the current plan will never be modified.

In the current job market, there is always the option to convert to Chapter 7 bankruptcy if job loss is causing a problem. When people are laid off today, they may even need to contemplate switching careers. There are relatively few jobs available, and those that do exist do not pay very well. Sometimes it becomes unavoidable that you will be unable to continue, and converting to Chapter 7 bankruptcy may be the only option.

When converting from a Chapter 13 to a Chapter 7 bankruptcy, the debtor must consult with their bankruptcy attorney. There are numerous other potential alterations. Due to the changes in a person's financial circumstance, it may be time to sell the home. Now is the time for the debtor to take a serious look at what they envision for their future. Here is where a bankruptcy attorney can be of great assistance in navigating the complexities of the bankruptcy code.""

" - https://www.affordablecebu.com/
 

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"Can't Afford A Chapter 13 Bankruptcy, Convert To Chapter 7" was written by Mary under the Finance / Wealth category. It has been read 114 times and generated 0 comments. The article was created on and updated on 01 June 2023.
Total comments : 0