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Chapter 13 Bankruptcy Information - How To Formulate Chapter 13 Debt Repayment Plans

Chapter 13 Bankruptcy Information - How To Formulate Chapter 13 Debt Repayment Plans
"Chapter 7 bankruptcy is the most common method adopted by people with unmanageable debt burdens, so when people speak about filing for bankruptcy, they are typically referring to it. Chapter 7 bankruptcy allows you to liquidate any remaining assets and use the proceeds to either reduce your debt or eliminate it entirely, depending on how much you can realize.

However, if you want to keep your assets and fulfill your financial obligations to your creditors as much as possible, Chapter 13 bankruptcy may be an option for you, as it allows you to make payments to your creditors over a specified period of time and clear your debts. Chapter 13 debt repayment programs are a lifeline for bankrupt individuals who do not wish to lose their assets.

If you are unconcerned with retaining your assets or have none to begin with, you may be compelled to follow Chapter 7 when filing for bankruptcy, as this could eliminate all of your debts. However, this is not as straightforward as it appears. In order to qualify for this, you must demonstrate that you are unable to pay your bills. If you are ineligible for Chapter 7 under the recently amended bankruptcy code, you will have no choice but to file for Chapter 13 and repay at least a portion of your debts.

This is where Chapter 13 debt repayment plans can assist you; you will be required to choose a suitable payment schedule spanning 3 to 5 years and recompense your creditors in full or in part. The basis for this is a procedure known as the ""Means Test,"" which is a complex evaluation of your ability to repay based on your monthly income and expenses. This test is used to determine what monthly payments you can afford.

Chapter 13 bankruptcy is appropriate for individuals who do not want to forfeit their homes during the bankruptcy process or who have fallen behind on mortgage payments. With Chapter 13 debt repayment plans, these individuals can repay their arrears and retain their homes.

Before deciding to register for Chapter 13 bankruptcy, you must determine your eligibility. Once you have initiated Chapter 13 proceedings, you can choose from a variety of Chapter 13 debt repayment programs and repay your creditors for pennies on the dollar.""

" - https://www.affordablecebu.com/
 

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"Chapter 13 Bankruptcy Information - How To Formulate Chapter 13 Debt Repayment Plans" was written by Mary under the Finance / Wealth category. It has been read 162 times and generated 1 comments. The article was created on and updated on 01 June 2023.
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