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Chapter 13 Bankruptcy and Complete Information

Updated on October 17, 2011
chapter 13 bankruptcy
chapter 13 bankruptcy

Chapter 13 Bankruptcy is another choice if you do not want to do the Chapter 7 Bankruptcy because both are having the differences in terms of the requirements and the steps on how to do it. This evaluation on the private debts in the alternative for you who do not have efforts in the previous chapter and want to keep the assets with paying lower rate with the unlimited debt. This chapter of the bankruptcy does not simply liquidate debt like Chapter 7. It will repay you at least at much money that you owe during a three-to-five year period of time, in substitute for keeping your assets in safe. You will not asked to pay with giving away your assets, you can prepare for the money that you are going to use to repay the owed money in certain period of time according to the rules in the Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy and How You Do It

There are steps that you have to do in order to join this Chapter 13 Bankruptcy. Chapter 13 does not set up this limitation. Further, while Chapter 7 requires debtors to proceeds all non-exempt assets for sale Firstly, you have to consult about your ability in the budgets and the private assets that you have. It is important to choose whether you will join the chapter 13 or the chapter 7. Both of the chapters are different depend on the budgets and the abilities of each person that want to join this chapter. The next thing you have to do on this Chapter 13 Bankruptcy is you will have to make a list of debts you owe. You need to tell them the aim of owing the money. The next important thing is you have to do is to make plans of how you will pay the owed money.

The next step of this chapter is to fill the form of the payment agreement between you and the company that will give you the money to owe. You will have to mention the number of money you want to owe and you also have to consider about the ability that you have to pay the money back. You need to think about the income that you get with the money you owe. There are options of ways how to pay the money back. If you think that you need more time to repay the money, you can choose the five year payments, but if you think that in this Chapter 13 Bankruptcy you are able to pay it in three years then you can choose the last option. The last step is when this period of the chapter ends then any remaining debts you had originally owed are forgiven or discharged and the bankruptcy filing is complete. So, you have to concerns about many things before you decided to take the Chapter 13 Bankruptcy.


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      chicago bankruptcy attorney 6 years ago

      First of all a nice post. As we know bankruptcy is last option for any person who is financially challenged and cant do any think but if some one claimed for bankruptcy and don't get it it is the worst case. If we don't want to face this worst situation we must contact an expert attorney.