Benefits of Filing a Chapter 13

Why should someone file a bankruptcy chapter 13?

Whether you are facing foreclosure or behind on your car payment, you should consider filing a Chapter 13 bankruptcy. This type of bankruptcy will help you keep your home if you qualify and reduce your debt. Usually, a repayment plan will last three to five years.

The plan is a written document describing the trustee's payment schedule. It will include how much the trustee will pay each creditor and how long the repayment plan will take. The length of the plan will depend on the value of your nonexempt property.

Types of Debt To Discharge in a Chapter 13 Bankruptcy

The most common types of debt that are discharged in a Chapter 13 proceeding are personal loans and credit card balances. Other debts include medical bills, child support, criminal fines, and long-term obligations.

In addition to reorganizing your loan payments, a Chapter 13 bankruptcy can also allow you to wipe out secured debt, such as a mortgage or second mortgage. This type of bankruptcy is more suited for people with a steady income and valuable assets.

However, not everyone who files for bankruptcy is eligible for Chapter 13. Those who qualify will need to pass a means test. In addition, they will need to have sufficient disposable income to make payments to all of their creditors. Those who file for bankruptcy but don't follow through on their plan will have their debts not discharged.

It's important to remember that the Chapter 13 bankruptcy process will remain on your credit report for seven years. This is why it's important to choose a bankruptcy option that is right for you.

Chapter 13 Bankruptcy Attorney Free Consultation

If you are looking for a legal advice about chapter 13 bankruptcy or in need an attorney, call this law firm for free consultation. We have the Best Attorneys in Utah.

Ascent Law LLC

8833 S Redwood Road Suite C

West Jordan UT 84088

(801) 676-5506

https://www.ascentlawfirm.com

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Riverton, UT, USA

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