Know What Happens After Chapter 13 Bankruptcy Filing Is Made
For filing chapter 13 bankruptcy, a debtor needs to ensure that all the eligibility requirements that are stipulated by the bankruptcy code in the United States have been fulfilled. This is because, with changes in bankruptcy laws, probable bankruptcy filers no longer have the liberty to opt for a specific type of bankruptcy that they might want to file.
For chapter 13 bankruptcy a debtor needs to ensure that all the eligibility requirements that are stipulated by the bankruptcy code in the United States have been fulfilled. This is because, with changes in bankruptcy laws, probable bankruptcy filers no longer have the liberty to opt for a specific type of bankruptcy that they might want to file. The new bankruptcy rules and regulations require debtors to go through the Means Test as well as credit counseling procedures. Based on the results of the Means Test, the court would decide if you get your debts discharged with a favorable monthly repayment plan under chapter 13 bankruptcy rules. Therefore, if you are considering filing chapter 13 personal bankruptcy, here is some vital information which might guide you in your effort to secure debt relief.
- Procedure for filing chapter 13The entire procedure for filing chapter 13 is a systematic one. In the first step, a bankruptcy filer needs to pass the Means Test and subsequently he has to avail credit counseling sessions provided by a credit counseling agency that is approved by the government at least six months before he can file for bankruptcy. Furthermore, if the means test determines that there is enough disposable income for repaying creditors, automatically chapter 13 bankruptcy rules apply to the debtor’s case.
- What happens once chapter 13 bankruptcy is filed?After a chapter 13 has been filed, the court allows the bankruptcy filer to retain his valuable assets. To administer the case, the bankruptcy court appoints a Trustee. Typically, chapter 13 personal bankruptcy could help you to get your finances back in order and at the same time enables you to repay your debts through a monthly repayment schedule that is spread over 3 to 5 years.
The biggest benefit that a debtor could derive out of filing chapter 13 bankruptcy is that your creditors may agree to reduce what is actually being owed for much lower amounts. This is possible through effective negotiations carried out by your bankruptcy lawyer with each of your creditors in the court. The trustee appointed by the court would go in to finer details of your financial situation and depending upon its genuineness may direct the creditors to settle for less than what you owe. In any case, you need to choose competent personally bankruptcy lawyers who are thoroughly well versed with bankruptcy laws and filing procedures.
Thus, chapter 13 bankruptcy could be the most desirable option if you intend to carry on with your business operations and at the same time want to repay your creditors.
To get more useful information on what happens after chapter 13 bankruptcy filing, it’s strongly recommended to utilize the professional legal services offered by reputed online bankruptcy service providers like LoansStore.
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