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Flexibility is a benefit of Chapter 13 bankruptcy.

Flexibility is a benefit of Chapter 13 bankruptcy.
"Since the start of the New Year, 2010 bankruptcy filings have been tallied. It's not surprising that the number of Americans filing for bankruptcy set a record last year. The unemployment rate is currently 9 percent, and the majority of the media continue to report that things are improving. The figures do not deceive. Although the majority of individuals file for bankruptcy under Chapter 7, there is a growing interest in Chapter 13. Many individuals hold on much longer than they should because they do not feel right abandoning their debts due to their pride. A Chapter 13 bankruptcy gives the debtor the ability to negotiate the repayment of their debts with their creditors. This allows the debtor, at least in their own minds, to save dignity.In recent years, debtors have placed significant emphasis on the flexibility of Chapter 13 bankruptcy. Since 2005, when the bankruptcy statute was modified, it has become more difficult to qualify for Chapter 7 bankruptcy. This has caused many individuals to reconsider Chapter 13 bankruptcy. One of the greatest benefits of filing Chapter 13 is the ability to modify your payment schedule even after the case has been filed. Due to the 3- to 5-year duration of the payment plan, the court recognizes that a person's financial circumstances may fluctuate. During the course of a Chapter 13 bankruptcy, if the debtor experiences a change in their income or expenses, they can file to modify their plan so that they can afford the payment plan. It must be submitted to the court, which will usually grant approval. In the current economic climate, many individuals have experienced a pay cut that would force them out of their chapter 13 plan if they were unable to modify it.Currently, many families are experiencing financial difficulties and may be required to return a vehicle to the bank while in Chapter 13 bankruptcy. The ability to make changes midstream is one of the advantages of this form of bankruptcy filing. Consider the alterations that have occurred in your life in the past five years. In today's economy, the capacity to negotiate can be extremely advantageous. Banks and lenders have no desire to foreclose on properties or repossess vehicles. This grants the debtor additional authority with the support of the bankruptcy court. In some instances, a debtor may be able to refinance or modify a mortgage, or even negotiate a reduction in the monthly payment on a vehicle, so that the debtor can afford to retain the vehicle.Filing Chapter 13 bankruptcy can be extremely complicated, so it is recommended to be represented by an attorney. A Chapter 13 bankruptcy attorney will have extensive negotiation experience and will protect their client to the fullest extent of the law. Always take the time to discuss with a bankruptcy attorney the prospect of your income decreasing or your expenses rising over the next few years before filing for bankruptcy. This will equip the attorney with a solid understanding of what may occur in the near future and how to prepare for it.
" - https://www.affordablecebu.com/

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"Flexibility is a benefit of Chapter 13 bankruptcy." was written by Mary under the Finance / Wealth category. It has been read 118 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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