A Brief Explanation of Chapter 13 Bankruptcy and How it Works
Chapter 13 bankruptcy may not be pleasant, but it’s a powerful tool that can help you get your finances and your life under control. If you’re considering Chapter 13 bankruptcy as a way to get ahold of your finances, keep reading to learn some important information about this legal procedure.
Why File for Chapter 13?
Chapter 13 is for those individuals with income who are looking to pay their debts but can’t due to the way their financial agreements are structured. Thus, they are looking to restructure their financial obligations. Chapter 13 differs from Chapter 7 (the other type of bankruptcy for individuals) in that your debts and obligations aren’t discharged in Chapter 13 like they are in Chapter 7. Additionally, with Chapter 13, your property may not be liquidated as it is in Chapter 7 proceedings.
Chapter 13 Eligibility Requirements
Chapter 13 has strict eligibility requirements. For one, you must not have more than $394,725 of unsecured debt and no more than $1,184,200 of secured debt. Additionally, you can’t file for Chapter 13 if you’ve had a prior petition dismissed in the past 180 days due to a willful failure to appear, or failure to comply with court orders, or if the petition was voluntarily dismissed after creditors sought relief from the court. Plus, you must receive credit counseling within 180 days before filing for bankruptcy, although there are some exceptions to this last rule.
Your First Step Towards Chapter 13
Chapter 13 bankruptcy lawyers Valdosta should be your first step towards seeking Chapter 13 bankruptcy. Although there is no regulation requiring you to have an attorney, without one, you’ll have to navigate this somewhat complicated legal procedure yourself. Bankruptcy proceedings are unforgiving and final. Any mistakes you make will work against your case, and there are no do-overs. With the experience Chapter 13 bankruptcy lawyers Valdosta bring, you’ll have the peace of mind that your case is being handled professionally and competently.