Chapter 13 Bankruptcy- What Are the Eligibility Rules?
Chapter 13 bankruptcy is filed under certain stipulations and there is eligibility criteria define for filing chapter 13 bankruptcy. If a person fulfills these criteria than he can surely file chapter 13 and get discharge of his debts.
Filing chapter 13 bankruptcy is a good option for those who are in search of debt relief. This bankruptcy filing should only be considered under few terms. Those who are in serious need of debt relief can think of chapter 13 but a debtor should be aware of the few things and should be cautious before he files chapter 13 bankruptcy. The debtor should also be aware of the major differences between both types of bankruptcy, chapter 13 and chapter 7. If you too are in need of filing bankruptcy then Bankruptcyonly can help you. It provides services for filing all types of bankruptcy.
Bankruptcy is not a small thing and there is a great difference in filing chapter 13 and chapter 7 bankruptcy. By filing chapter 7 bankruptcy most of the debts are discharged and a debtor would be given a fresh financial start. One should qualify the means test for filing chapter 7 bankruptcy.
Chapter 13 bankruptcy rules are different from those of chapter 7 and it usually takes three to five years to get chapter 13 bankruptcy discharge. Here the debtor is set in a payment plan for almost three to five years and he has to pay the decided amount to his creditors every month. The discharge is only given after paying all the required debts.
To get approve, there is chapter 13 bankruptcy law which the borrower should follow. In this bankruptcy the completion rate is slow and many people are not getting success. Thus there is eligibility criteria define for filing chapter 13 bankruptcy; the borrower should file it only in the following conditions:
- If suppose a person is behind his mortgage payment and he wants to save his home then he can file chapter 13 bankruptcy.
- When a person is not eligible for a loan modification then he files chapter 13 bankruptcy.
- If a person earns more money and he is below the median income than he can’t file chapter 7 bankruptcy, so he chooses to file chapter 13 bankruptcy.
- Whenever a person wants to keep non-exempt assets then he files chapter 13 bankruptcy. According to chapter 13 bankruptcy information if a person wants to keep his car than he should file only chapter 13 bankruptcy.
To get more useful information on the Chapter 13 Bankruptcy Discharge and How to file for chapter 7 bankruptcy a, it is hereby recommended to utilize the professional services offered by reputed online service providers like LoansStore.
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