Friday, October 1, 2010
Filing Chapter 13 Bankruptcy
Filing Bankruptcy Chapter 13
October 1, 2010 by admin
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Chapter 13 type of bankruptcy is reorganization or a repayment of (some) debts usually provided by a credit counseling agencies. It is vital by the new bankruptcy law that a self who wishes to file bankruptcy must go through a credit counseling session, and receive documentation of proven attendance provided by a credit counseling agencies. With the new bankruptcy law under BAPCPA effective in October 2005, people filing bankruptcy chapter 13 has increased. The new bankruptcy law indirectly encourages people to file this type of bankruptcy.
In order to qualify for a chapter 13 type of bankruptcy, a consumer must have a steady income that when minus all expenses, it still leaves an amount that can pay his debts for an agreed period of time. Filing bankruptcy chapter 13 has advantages over a chapter 7 type of bankruptcy. It can save the home of someone that is set up for foreclosure. It also gives the debtor chance to reschedule secured debts. The disadvantage of filing bankruptcy chapter 13 is that its record will stay in your credit report up to ten years. However,this is not as bad as it seems. It actually shows future lenders that a chapter 13 debtor has been making regular, on-time payments each month, and that counts alot when deciding whether to lend to the borrower.
How do you file bankruptcy chapter 13? The way to file chapter 13 type of bankruptcy is to go first to a credit counseling agency. You have to go through one of their credit counseling sessions and receive documentation of your attendance from them to complete a requirement on the new bankruptcy law. Most likely, they will go over your income and exepenses and provide you an amount called "disposable income" that you will use to propose to your creditors, usually it is in the time period of three to five years.
To be able to do all of this you have to make a bankruptcy petition, and you will need to hire at least a petition prepare if you do not want to do all the work by physically. This can really save you some time because petition preparer’s main job is to provide information on all your bankruptcy documents which can take you more of your time if you will do it on your own. Make sure you hire a petition preparer that follows the legal rules. One thing you should note is that petition preparers are not authorized to give you legal advice.
If you have some questions regarding filing chapter 13, then you will need to hire a excellent bankruptcy lawyer. If you want to save some money you can hire a bankruptcy lawyer to just prepare your papers and pay their flat fee, then do the rest all by physically. If money is no problem in hiring a bankruptcy lawyer then this can be simple for you, you can let the bankruptcy lawyer do all the work.
For more information on how to file chapter 13 affordably, visit the site below.
www.southjerseylegal.com
October 1, 2010 by admin
Leave a Comment
Chapter 13 type of bankruptcy is reorganization or a repayment of (some) debts usually provided by a credit counseling agencies. It is vital by the new bankruptcy law that a self who wishes to file bankruptcy must go through a credit counseling session, and receive documentation of proven attendance provided by a credit counseling agencies. With the new bankruptcy law under BAPCPA effective in October 2005, people filing bankruptcy chapter 13 has increased. The new bankruptcy law indirectly encourages people to file this type of bankruptcy.
In order to qualify for a chapter 13 type of bankruptcy, a consumer must have a steady income that when minus all expenses, it still leaves an amount that can pay his debts for an agreed period of time. Filing bankruptcy chapter 13 has advantages over a chapter 7 type of bankruptcy. It can save the home of someone that is set up for foreclosure. It also gives the debtor chance to reschedule secured debts. The disadvantage of filing bankruptcy chapter 13 is that its record will stay in your credit report up to ten years. However,this is not as bad as it seems. It actually shows future lenders that a chapter 13 debtor has been making regular, on-time payments each month, and that counts alot when deciding whether to lend to the borrower.
How do you file bankruptcy chapter 13? The way to file chapter 13 type of bankruptcy is to go first to a credit counseling agency. You have to go through one of their credit counseling sessions and receive documentation of your attendance from them to complete a requirement on the new bankruptcy law. Most likely, they will go over your income and exepenses and provide you an amount called "disposable income" that you will use to propose to your creditors, usually it is in the time period of three to five years.
To be able to do all of this you have to make a bankruptcy petition, and you will need to hire at least a petition prepare if you do not want to do all the work by physically. This can really save you some time because petition preparer’s main job is to provide information on all your bankruptcy documents which can take you more of your time if you will do it on your own. Make sure you hire a petition preparer that follows the legal rules. One thing you should note is that petition preparers are not authorized to give you legal advice.
If you have some questions regarding filing chapter 13, then you will need to hire a excellent bankruptcy lawyer. If you want to save some money you can hire a bankruptcy lawyer to just prepare your papers and pay their flat fee, then do the rest all by physically. If money is no problem in hiring a bankruptcy lawyer then this can be simple for you, you can let the bankruptcy lawyer do all the work.
For more information on how to file chapter 13 affordably, visit the site below.
www.southjerseylegal.com
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