The Difference Between Chapter 7 And Chapter 13 Bankruptcy

For this type of bankruptcy, you'll need to create a repayment plan, which determines the amount of money you'll need to pay for each of your debts. The court will need to approve your plan. The payments begin 30 days after your case is filed. You may think about waiting until the creditor meeting or for your payment book to arrive. Make sure that you mail your payments in on time, so you don't miss any of your payments. Show your creditors that you can be trusted to make the payments, and you will have an easier time negotiating your payment schedule at the creditor meeting.

Things that can be brought under control are spending. Credit cards, car payments, mortgages and holidays can bury you in debt that may make Chapter 13 your best option. Financial planning and having savings for the things you want to buy can lead you away from that plan. Have a Glendale Bankruptcy lawyer help you now with a plan for the future. It's never too late. Preventing disaster is another good reason to file for bankruptcy. Filing will give you the time you need to get everything paid for and avoid losing your car, your house or your utilities and necessities. Talk to a Glendale Bankruptcy Lawyer.

Chapter 13 bankruptcy is similar to entering into a debt consolidation loan, which is often an option many people exhaust before having their debts discharged by courts. Both instances involve the debtor giving the monthly payment to an appointed trustee. The trustee then relegates the payments to the creditors according to the agreement.

About 30-40 days after you file for bankruptcy relief, you and your bankruptcy attorney will attend a meeting of creditors. The bankruptcy trustee will review your bankruptcy papers and Chapter 13 plan. Once your bankruptcy appears to be in order, the trustee will typically consent to confirmation (approval) of your Chapter 13 and your plan will be confirmed (approved).

Each person's situation is different from the next. As such an individual must take stock of what options they have when trying to file for bankruptcy. Before jumping the gun and filing, there a few question that needed to be asked. This needs to be done because every chapter of bankruptcy contains different conditions and clauses. Some of the questions that need to be asked are whether or not you have assets you want to keep? Does your job's income allow for you to come up with a reorganization play to aid in covering some of your debt? These are just a couple of questions that need to be addressed before making a decision.