Chapter 13 Bankruptcy May Stop Foreclosure
What is Chapter 13 Bankruptcy?
Are you falling behind in bill payments? If yes, then Chapter 13 bankruptcy may be able to help you get back on track. Chapter 13 is designed to prevent foreclosure, repossession, wage garnishment and some lawsuits. Millions of people have turned to filing bankruptcy as a way to get out of debt, protect their hard-earned property and get back on track.
Who Can File for Chapter 13 Bankruptcy?
Obviously, Chapter 13 bankruptcy is not for everyone. In order to qualify for Chapter 13, a debtor should:
- Have a regular source of income from which to make pre-determined payments.
- Have adequate disposable earnings to make regular payments after covering existing essential living everyday expenditure.
- Fall under pre-set limits for secured and unsecured debts. The limits are updated from time to time and a local bankruptcy attorney can tell you the exact current limits for secured debts.
Filing Chapter 13 Bankruptcy
A typical Chapter 13 bankruptcy case requires a debtor to establish and follow a debt repayment plan, which can last from 3-5 years. Generally, though the court proceedings you'll have to attend will likely be relatively simple and straightforward. There are several dates that you should know about that may impact your right to file a case, or affect the relief available to you.
How Chapter 13 Bankruptcy May Stop Foreclosure
There are many consumers who just don't know that Chapter 13 bankruptcy was designed to prevent foreclosure. For a lot of people, the word "bankruptcy" brings to mind only the Chapter 7 bankruptcy liquidation, in which debts are discharged but non-exempt property can be sold for the benefit of creditors. However, Chapter 13 bankruptcy can be a powerful method to possibly save from foreclosure.
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