The paperwork is one of the most important parts. Filling it out completely and correctly will ensure that your case will be seen and discharged as quickly as possible. If you have any questions about how to fill it out, don't hesitate to talk to your attorney. You should talk to your attorney about the monthly payment amounts and addresses for your mortgage, car, and other items that you're including in your bankruptcy. Your attorney can also help you find a credit counseling course, which needs to be completed before your bankruptcy can be discharged.
This type of bankruptcy gives them the help that they need to negotiate with their creditors. It also provides some "wiggle room" for repaying debts with a timely schedule. Psychologically, this form of bankruptcy is less detrimental to people's self-images because they have fulfilled their financial obligations rather than simply having them completely discharged.
Here is how Chapter 13 bankruptcy works. The process begins by filing a bankruptcy under Chapter 13 of the Bankruptcy Code. You list all of your assets, debts, income and expenses, propose a Chapter 13 plan that repays certain debts and eliminates others, and then complete your plan over a 3-5 year plan term.
Some people get into debt because their lifestyle exceeds their income while others find themselves in debt because they lost their job and haven't been able to recover fast enough. Whatever the reasons are, there is always a way to find your way out of debt. Whatever way you choose to get out of debt, filing for bankruptcy may be an option. Depending on the severity of debt, an individual may have an option between Chapter 7 and Chapter 13.
It took a while to accumulate your debt, and it will take some time to get rid of it. For most consumers, 3 to 5 years is nothing compared to the length of time it would have taken to repay every loan without filing for bankruptcy. A Chapter 13 bankruptcy usually allows you to reduce the amount of debt that you need to pay off by a substantial amount, which gives you the opportunity for a fresh start.
Chapter 13 will also eliminate a few additional debts that Chapter 7 won't. For example, if you've agreed to pay certain of your ex-spouse's debts or expenses in a divorce agreement that are not in the nature of spousal support, you can discharge that obligation. We'll have to carefully review your divorce agreement to give you a definitive answer on whether or not those obligations are dischargeable. Even then you can expect that your ex-spouse may object.