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Chapter 13 Bankruptcy Confusion Online

Chapter 13 Bankruptcy Confusion Online
"""Today, bankruptcy is becoming a household term, although many are still attempting to conceal it. In 2010, close to 1.6 million individuals filed for bankruptcy. Due to pride, the majority of individuals reveal their financial difficulties only to their closest companions. It can be difficult to obtain information on declaring bankruptcy because you do not know who to trust. On the one hand, if your peers were more forthcoming about their bankruptcy filing, you might be able to obtain first-hand information about how their filing went. Therefore, you are compelled to peruse online blogs and advertisements for law firms. There is a great deal of accurate information on the Internet, as well as a great deal of false information. There are online accounts of Chapter 13 bankruptcy failing because there was insufficient money to survive on. This is incorrect because the purpose of bankruptcy was to provide debt relief to individuals who were unable to pay their bills.

In a nutshell, Chapter 13 bankruptcy is typically utilized by individuals attempting to avoid foreclosure on their property. In many of these instances, the people's ability to pay all of their bills and their mortgage payment is stifled by their massive unsecured debts. The only reason a Chapter 13 payment plan is impractical is because the debtor took off more than they could chew when establishing it with their bankruptcy attorney. Chapter 13 bankruptcy provides the debtor with a great deal of flexibility to modify the payment plan if they discover they cannot afford it. The last thing a bankruptcy court desires is for a debtor to fail.

I believe that many online stories are miscommunicated, with the debtor lamenting because things did not go as planned. The ability to modify a mortgage is something Congress has not included in a bankruptcy filing. Some individuals have spent more on their house than they can afford. If a person's mortgage is excessively high, he or she should consider leaving it go in bankruptcy and possibly filing Chapter 7 to eliminate all unsecured debt. If the first trust deed is manageable, but the second and third, along with a vehicle loan and credit card debt, are preventing the debtor from making ends meet at the end of the month, Chapter 13 bankruptcy may be the prescription.

In Chapter 13 bankruptcy, secured debts and court-ordered payments are paid before unsecured debts. Having unsecured debts, such as signature loans and credit cards, at the bottom of the list. As a result of the significant decline in property values throughout the United States, the value of many people's homes is less than what they owe on them. If the value of the property has fallen below the amount of the first trust deed, the debtor may remove the second and third trust deeds, rendering them unsecured and non-priority claims. During the 3 to 5 year payment plan, the Chapter 13 trustee pays creditors according to their priority. If the amount of payments to secured debts is considerable, the unsecured debts are frequently paid only a nominal amount, with the remainder being discharged at the conclusion of the bankruptcy filing.

Do not believe everything you read online, particularly blogs. When things do not go as planned, people publish biased articles that do not present both sides of the story. If you're serious about declaring bankruptcy, don't spend a lot of time perusing articles; instead, consult a bankruptcy attorney to determine if there are any benefits for your specific situation.""

" - https://www.affordablecebu.com/
 

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"Chapter 13 Bankruptcy Confusion Online" was written by Mary under the Finance / Wealth category. It has been read 182 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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