Filing For Bankruptcy Chapter 13

Author: John Penn

A lot of people end up looking at bankruptcy chapter 13 when they get into financial difficulties out of which they simple can't find a way out. Most of them choose to file a bankruptcy chapter 13 where the court will take your entire claimed debts and find you a plan for repayment that matches with what you can actually afford. If you are on the verge of bankruptcy, you should first explore the various bankruptcy alternatives available.

For those people who have at least some money to spend on creditors every month but not as much as what the creditors expect them to pay the bankruptcy chapter 13 is the right option. This kind of bankruptcy permits a person to come clean and pay all that he owes but then there will be a bad mark on his credit report for having gone through such a process. Today, if you are looking for bankruptcy alternatives you do not even have to leave the comfort of your home. Just go on the Net and you will find several bankruptcy alternatives to choose from.

Although the bankruptcy chapter 13 leaves a bad marking on your credit report, it is still worth it for people who cannot afford to pay what they owe their creditors any other way. When you reach this point at some time you should keep in mind that there is also a chapter 7 besides the chapter 13. In chapter 7, the court decides whether the person filing really does not possess the means to pay back the debt through bankruptcy chapter 13. Each case will be different and the reasons could be varied. But in contrast to chapter 13, the judge might discharge all of the person's debt so that he doesn't owe anything at all in case of chapter 7.

Although the chapter 7 may seem more attractive than the bankruptcy chapter 13, it is fully dependent on what the judge decides. Which chapter you file does not depend on you or on your lawyer. The exact chapter you will eventually file will be based on the decision that the judge makes using the information and case presented by your lawyer. Hence it is extremely important that you hire a lawyer who knows what he is doing.

Try to use the services of a lawyer who has a lot of experience with bankruptcy chapter 13 and chapter 7 as he will know how to present your financial details in order to achieve the desired results. Still, you cannot be sure that you will be approved for the bankruptcy chapter that you attempt to file for but at least you will have made an effort to increase your chances. You can also check other bankruptcy alternatives as you can file the bankruptcy chapter 13 and the chapter 7 only once each every seven years.

Article Source: http://www.sooperarticles.com/finance-articles/bankruptcy-articles/filing-bankruptcy-chapter-13-15839.html

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If you are on the verge of bankruptcy, check out the bankruptcy alternatives here and while you are at it learn more about bankruptcy chapter 13 as well!

The Advantages of Chapter 13 Bankruptcy

Author: MIKE SELVON

Chapter 13 bankruptcy is often their best option for debtors who decide to stop collection efforts from their creditors but still want to repay their debts. People who have fallen behind in their mortgage payments often choose this option because it allows them a chance to "catch up" before their home is foreclosed upon. Filing for Chapter 13 will stop the collection efforts of all the creditors that the debtor lists on the petition and it allows them a variety of options for repayment, if they meet the eligibility requirements.

Foreclosures are the biggest reason that most people choose Chapter 13 bankruptcy rather than the more attractive Chapter 7. With Chapter 13, homeowners who face foreclosure proceedings can halt the legal actions by choosing this bankruptcy option.

A court appointed bankruptcy trustee will act on the behalf of the homeowner to make provisions with the mortgage company. The homeowner is then allowed to make their monthly mortgage payments with an extra amount each month until they have caught up on their delinquent payments.

Another thing that Chapter 13 bankruptcy affords to debtors is the opportunity to repay secured debts over a period. Oftentimes, the payment plans reduce the amount of the monthly payment that the debtor was paying. While Chapter 7 is the most popular option in bankruptcy, many people choose Chapter 13 because they feel a moral obligation to repay their debts.

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.

Chapter 13 bankruptcy is similar to entering into a debt consolidation loan, which is often an option many people exhaust before having their debts discharged by courts. Both instances involve the debtor giving the monthly payment to an appointed trustee. The trustee then relegates the payments to the creditors according to the agreement.

For purposes of getting a mortgage, many companies view both of these equally. In other words, a debt consolidation loan is the same thing as filing for Chapter 13 bankruptcy in the eyes of many mortgage companies. One advantage of these options is that the debtor does not need to have direct contact with the creditors who can have a significant negative impact on a person's self-esteem.

Many debtors might choose to file under Chapter 13 bankruptcy because they have loans that required co-signers. With this type of bankruptcy, the third parties are protected from the creditors. This means that the creditors can no longer pursue either party in an attempt to collect the debt. They must deal with the trustee that the court appointed to the particular case if they have any questions or concerns.

Bankruptcy was designed to offer consumers a fresh start after getting into a tough financial situation. Some people, however, prefer to repay their debts due to financial reasons or moral obligations. For these people, the courts offer Chapter 13 bankruptcy as a viable option.

Not only does it require the creditors to stop contacting the debtor, it also protects homes from foreclosures and third parties from legal recourse. Chapter 13 has several advantages for those who are trying to honestly fulfill their obligations.

Article Source: http://www.articlesbase.com/law-articles/the-advantages-of-chapter-13-bankruptcy-140161.html

About the Author

Mike Selvon is the owner of various niche portals. Our bankruptcy portal is a great resource for more information on the advantages of chapter 13 bankruptcy. While you are there don't forget to claim your free gift.

How Flexible is Chapter 13 Bankruptcy?

Author: BassFranklin

One of the most common questions about Chapter 13 bankruptcy is what happens if your financial situation changes during the duration of the plan? After all, a Chapter 13 plan runs from between three to five years and a lot of life can happen in that period of time. What happens if you or your spouse lose a job, get sick or in an accident and incur medical expenses, or have a change in family size?

Fortunately, Chapter 13 bankruptcy does have a great deal of flexibility in case of a change of income or expenses during the duration of the plan. Many times the court can agree to modify your plan to make it work. This often involves a lowering of monthly payments which debtors are obligated to pay.

Other times, the changes may need to be made even before a first payment is sent. Sometimes debtors are still unable to pay their mortgage even with the restructuring of their debt in Chapter 13. In cases such as this, modification is necessary. If the situation that you are experiencing is only a short term problem, the court may grant a moratorium in payments if it will allow you an opportunity to recover from an illness, one-time expense, or some other temporary cash flow problem.

If your situation changes significantly, Chapter 13 has what is called a "hardship discharge". This happens when a Chapter 13 plan is confirmed but circumstances come up that prevent the debtor from completing the plan. However, there are stipulations to a hardship discharge which make it available only if: the failure to pay comes from circumstances beyond the debtor's control, creditors have received at least as much money as they would have received under Chapter 7 where assets are liquidated, and if modification of the plan is impossible.

If you are seriously considering bankruptcy and you live in California, you need to consult with a California bankruptcy lawyer. While the process is complicated, they will be able to help you understand your options and help you avoid making bad decisions that you could later regret. If you are over-burdened with bills and cannot see any light at the end of the tunnel, bankruptcy may be the best option to help you get that much needed fresh start and allow you to rebuild your future. The law offices of Borowitz, Lozano and Clark, LLP specialize in California bankruptcy and exclusively represent debtors in Consumer and Small Business Bankruptcies. They have helped over 20,000 families get free from the burden of debt since 1997. Call today for a free debt consultation at 1-800-509-3200.

Article Source: http://www.sooperarticles.com/finance-articles/bankruptcy-articles/how-flexible-chapter-13-bankruptcy-22151.html

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Brian Reed. bankruptcy law - How Flexible is Chapter 13 Bankruptcy?

The Advantages of Chapter 13 Bankruptcy

Author: MIKE SELVON

Chapter 13 bankruptcy is often their best option for debtors who decide to stop collection efforts from their creditors but still want to repay their debts. People who have fallen behind in their mortgage payments often choose this option because it allows them a chance to "catch up" before their home is foreclosed upon. Filing for Chapter 13 will stop the collection efforts of all the creditors that the debtor lists on the petition and it allows them a variety of options for repayment, if they meet the eligibility requirements.

Foreclosures are the biggest reason that most people choose Chapter 13 bankruptcy rather than the more attractive Chapter 7. With Chapter 13, homeowners who face foreclosure proceedings can halt the legal actions by choosing this bankruptcy option.

A court appointed bankruptcy trustee will act on the behalf of the homeowner to make provisions with the mortgage company. The homeowner is then allowed to make their monthly mortgage payments with an extra amount each month until they have caught up on their delinquent payments.

Another thing that Chapter 13 bankruptcy affords to debtors is the opportunity to repay secured debts over a period. Oftentimes, the payment plans reduce the amount of the monthly payment that the debtor was paying. While Chapter 7 is the most popular option in bankruptcy, many people choose Chapter 13 because they feel a moral obligation to repay their debts.

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.

Chapter 13 bankruptcy is similar to entering into a debt consolidation loan, which is often an option many people exhaust before having their debts discharged by courts. Both instances involve the debtor giving the monthly payment to an appointed trustee. The trustee then relegates the payments to the creditors according to the agreement.

For purposes of getting a mortgage, many companies view both of these equally. In other words, a debt consolidation loan is the same thing as filing for Chapter 13 bankruptcy in the eyes of many mortgage companies. One advantage of these options is that the debtor does not need to have direct contact with the creditors who can have a significant negative impact on a person's self-esteem.

Many debtors might choose to file under Chapter 13 bankruptcy because they have loans that required co-signers. With this type of bankruptcy, the third parties are protected from the creditors. This means that the creditors can no longer pursue either party in an attempt to collect the debt. They must deal with the trustee that the court appointed to the particular case if they have any questions or concerns.

Bankruptcy was designed to offer consumers a fresh start after getting into a tough financial situation. Some people, however, prefer to repay their debts due to financial reasons or moral obligations. For these people, the courts offer Chapter 13 bankruptcy as a viable option.

Not only does it require the creditors to stop contacting the debtor, it also protects homes from foreclosures and third parties from legal recourse. Chapter 13 has several advantages for those who are trying to honestly fulfill their obligations.

Article Source: http://www.articlesbase.com/law-articles/the-advantages-of-chapter-13-bankruptcy-140161.html

About the Author

Mike Selvon is the owner of various niche portals. Our bankruptcy portal is a great resource for more information on the advantages of chapter 13 bankruptcy. While you are there don't forget to claim your free gift.

Should I File Chapter 13 Or 7 Bankruptcy?

Author: Eulalia Allmand

If you live are under tremendous financial pressure and unable to pay off your outstanding debts, then filing bankruptcy may be the only viable option that you have.

As an individual you have a choice of filing for bankruptcy under two chapters. An explanation of both the chapters - and how to choose the chapter more suitable for you - is given below.

Chapter 7

You can file for bankruptcy under Chapter 7 only if you pass the "Means Test".

This test involves calculating your gross income and assets and deducting your liabilities and your expenses during the past 6 months prior to you having filed for bankruptcy. These numbers are then compared with the average median income of a similar sized family in Texas.

If your net income is lower, then you qualify for filing under Chapter 7; otherwise, you may have to file under Chapter 13. Once you file under Chapter 7, the court will appoint a trustee, who will sell off your unprotected or non-exempt assets to pay off your creditors.

Your case can be discharged within 6 months if you file for bankruptcy under this Chapter. Since normally your home and cars will be exempt, you will be able to retain these assets.

If your home and car are at risk as a result of not being able to meet your obligations, then you can see why retaining a qualified bankruptcy attorney like Allmand and Lee to file Chapter 7 on your behalf is a wise choice.

Chapter 13 Explained

Unlike Chapter 7, filing under Chapter 13 will give you the chance to repay your outstanding debts over a longer period of time, usually between 3 to 5 years. You also have the chance to keep all your property.

As with Chapter 7, once your attorney files for bankruptcy under Chapter 13 on your behalf, your creditors will no longer be able to foreclose on your home or take your possessions. By law, they must also stop harassing you immediately.

Once you file under Chapter 13, you will need to submit a repayment plan to the court, detailing your plan to pay off your debts. Your bankruptcy attorney can even try to get a part of your loan discharged, so that you can pay off the rest.

If your plan is approved, the court will appoint a trustee, who will monitor your repayment schedule to ensure that you stick to it.

Chapter 13 or 7?

Usually (depending on the situation), individuals try to file for bankruptcy under Chapter 7 in order to get most of their outstanding debts discharged. The time taken to do this is also quite less as compared to filing under Chapter 13.

The problem is that with the new, stricter laws put into place after October 2005, you might find it difficult to file under Chapter 7 and might have to file under Chapter 13. Most of your assets may also be disposed of by the court trustee in order to satisfy your creditors.

This might not happen under Chapter 13.

Therefore, Chapter 13 allows you to stay in control as you chart out a repayment plan stretching between 3 to 5 years. If you are wary of losing many of your assets and do not mind a longer repayment plan, then you could ask your bankruptcy attorney if you can file under Chapter 13.

However, if you want your case to get discharged within a short time and are unable to come up with a long-term plan to raise money to pay off your creditors, then filing under Chapter 7 would be a better option.

So, compare both chapters with your bankruptcy attorney before deciding on which chapter is the better option.

Article Source: http://www.articlesbase.com/finance-articles/should-i-file-chapter-13-or-7-bankruptcy-447212.html

About the Author

Allmand & Lee are bankruptcy lawyers in Dallas, TX who specialize in consumer bankruptcy and offer bankruptcy services that help good people through one of the toughest times in their life. For more information please visit us at http://www.allmandandlee.com/

The Advantages of Chapter 13 Bankruptcy

Author: MIKE SELVON

Chapter 13 bankruptcy is often their best option for debtors who decide to stop collection efforts from their creditors but still want to repay their debts. People who have fallen behind in their mortgage payments often choose this option because it allows them a chance to "catch up" before their home is foreclosed upon. Filing for Chapter 13 will stop the collection efforts of all the creditors that the debtor lists on the petition and it allows them a variety of options for repayment, if they meet the eligibility requirements.

Foreclosures are the biggest reason that most people choose Chapter 13 bankruptcy rather than the more attractive Chapter 7. With Chapter 13, homeowners who face foreclosure proceedings can halt the legal actions by choosing this bankruptcy option.

A court appointed bankruptcy trustee will act on the behalf of the homeowner to make provisions with the mortgage company. The homeowner is then allowed to make their monthly mortgage payments with an extra amount each month until they have caught up on their delinquent payments.

Another thing that Chapter 13 bankruptcy affords to debtors is the opportunity to repay secured debts over a period. Oftentimes, the payment plans reduce the amount of the monthly payment that the debtor was paying. While Chapter 7 is the most popular option in bankruptcy, many people choose Chapter 13 because they feel a moral obligation to repay their debts.

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.

Chapter 13 bankruptcy is similar to entering into a debt consolidation loan, which is often an option many people exhaust before having their debts discharged by courts. Both instances involve the debtor giving the monthly payment to an appointed trustee. The trustee then relegates the payments to the creditors according to the agreement.

For purposes of getting a mortgage, many companies view both of these equally. In other words, a debt consolidation loan is the same thing as filing for Chapter 13 bankruptcy in the eyes of many mortgage companies. One advantage of these options is that the debtor does not need to have direct contact with the creditors who can have a significant negative impact on a person's self-esteem.

Many debtors might choose to file under Chapter 13 bankruptcy because they have loans that required co-signers. With this type of bankruptcy, the third parties are protected from the creditors. This means that the creditors can no longer pursue either party in an attempt to collect the debt. They must deal with the trustee that the court appointed to the particular case if they have any questions or concerns.

Bankruptcy was designed to offer consumers a fresh start after getting into a tough financial situation. Some people, however, prefer to repay their debts due to financial reasons or moral obligations. For these people, the courts offer Chapter 13 bankruptcy as a viable option.

Not only does it require the creditors to stop contacting the debtor, it also protects homes from foreclosures and third parties from legal recourse. Chapter 13 has several advantages for those who are trying to honestly fulfill their obligations.

Article Source: http://www.articlesbase.com/law-articles/the-advantages-of-chapter-13-bankruptcy-140161.html

About the Author

Mike Selvon is the owner of various niche portals. Our bankruptcy portal is a great resource for more information on the advantages of chapter 13 bankruptcy. While you are there don't forget to claim your free gift.

The Advantages of Chapter 13 Bankruptcy

Author: MIKE SELVON

Chapter 13 bankruptcy is often their best option for debtors who decide to stop collection efforts from their creditors but still want to repay their debts. People who have fallen behind in their mortgage payments often choose this option because it allows them a chance to "catch up" before their home is foreclosed upon. Filing for Chapter 13 will stop the collection efforts of all the creditors that the debtor lists on the petition and it allows them a variety of options for repayment, if they meet the eligibility requirements.

Foreclosures are the biggest reason that most people choose Chapter 13 bankruptcy rather than the more attractive Chapter 7. With Chapter 13, homeowners who face foreclosure proceedings can halt the legal actions by choosing this bankruptcy option.

A court appointed bankruptcy trustee will act on the behalf of the homeowner to make provisions with the mortgage company. The homeowner is then allowed to make their monthly mortgage payments with an extra amount each month until they have caught up on their delinquent payments.

Another thing that Chapter 13 bankruptcy affords to debtors is the opportunity to repay secured debts over a period. Oftentimes, the payment plans reduce the amount of the monthly payment that the debtor was paying. While Chapter 7 is the most popular option in bankruptcy, many people choose Chapter 13 because they feel a moral obligation to repay their debts.

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.

Chapter 13 bankruptcy is similar to entering into a debt consolidation loan, which is often an option many people exhaust before having their debts discharged by courts. Both instances involve the debtor giving the monthly payment to an appointed trustee. The trustee then relegates the payments to the creditors according to the agreement.

For purposes of getting a mortgage, many companies view both of these equally. In other words, a debt consolidation loan is the same thing as filing for Chapter 13 bankruptcy in the eyes of many mortgage companies. One advantage of these options is that the debtor does not need to have direct contact with the creditors who can have a significant negative impact on a person's self-esteem.

Many debtors might choose to file under Chapter 13 bankruptcy because they have loans that required co-signers. With this type of bankruptcy, the third parties are protected from the creditors. This means that the creditors can no longer pursue either party in an attempt to collect the debt. They must deal with the trustee that the court appointed to the particular case if they have any questions or concerns.

Bankruptcy was designed to offer consumers a fresh start after getting into a tough financial situation. Some people, however, prefer to repay their debts due to financial reasons or moral obligations. For these people, the courts offer Chapter 13 bankruptcy as a viable option.

Not only does it require the creditors to stop contacting the debtor, it also protects homes from foreclosures and third parties from legal recourse. Chapter 13 has several advantages for those who are trying to honestly fulfill their obligations.

Article Source: http://www.articlesbase.com/law-articles/the-advantages-of-chapter-13-bankruptcy-140161.html

About the Author

Mike Selvon is the owner of various niche portals. Our bankruptcy portal is a great resource for more information on the advantages of chapter 13 bankruptcy. While you are there don't forget to claim your free gift.

Chapter 7 Or Chapter 13 Bankruptcy

Author: Legal Helpers

A New Beginning With Bankruptcy - Chapter 7 Bankruptcy

No one ever expects it to happen but everything get out of control and you are in debt far over your income. No one wants to think about filing bankruptcy but sometimes you just don't have a choice. Chapter 7 bankruptcy allows you to emerge from a difficult experience and start all over. Chapter 7 bankruptcy is when a debtor's assets are sold and the money is distributed to his creditors. If a debtor has no assets, his fresh start is achieved that much quicker.

Chapter 7 is the most common style of bankruptcy. This type of filing is most common, claiming about 65% of all bankruptcy filings. As long as the creditors have no objections, the debtor can be free of debt within a few months.

A debtor will not lose their house or car if they agree to continue to pay for these items. Many people are unfamiliar with this information and won't even check into Chapter 7 bankruptcy. The only drawback to Chapter 7 is that you are unable to file bankruptcy within six years after a previous bankruptcy discharge.

How do you file a Chapter 7 bankruptcy claim? The easiest answer to this is to contact a bankruptcy attorney. There are forms to be completed and filed with the court system. An attorney will lead you through this procedure. It is very important to answer all questions truthfully.

No one ever thinks they could possibly have to file bankruptcy. It is comforting to know that if things get bad enough you do have an option. It is also reassuring to know that you don't have to lose your house or car when trying to make a new beginning.

A Way To Ease The Pain - Chapter 13 Bankruptcy

The debts have been mounting up and you are getting farther and farther behind in paying them. You want to pay them but you are not sure exactly how to get that done. Chapter 13 of the bankruptcy code allows you to do exactly that. You can pay your bills back at a lower interest rate or no interest rate at all. A Chapter 13 bankruptcy allows you to keep your assets. This type of bankruptcy is for those who have a regular income and can afford request an adjustment. Chapter 13 bankruptcy gives you five years to repay your debts. During these five years, an attorney will oversee the process for both you and the courts.

A Chapter 13 bankruptcy allows the debtor to keep their property. The courts will set them up on an interest free plan of repayment. There will be a written plan drawn up to protect both the debtor and those that he owes. Once this plan has been written and approved the repayment process must begin in thirty to four-five days. The repayment plan does not have to involve a trustee, but could if desired. The creditors are bound by law to adhere to this plan and are unable to collect any other claims from the debtor. You will work with your attorney to set up a reasonable repayment plan for you.

Chapter 13 bankruptcy has a full discharge option when the debtor has completed all the required payments. This type of bankruptcy plan also allows for a repayment plan even if the creditors disagree with it. They do have the option to file an objection, but if it has been approved by the court these circumstances don't allow them a lot of options. If you want to repay your debts but at a slower rate this is probably the way you want to go. You get out of debt and get to keep all your property.

Article Source: http://www.articlesbase.com/finance-articles/chapter-7-or-chapter-13-bankruptcy-268587.html

About the Author
Legal Helpers consumer bankruptcy law practice is the largest in the U.S. with a client base of over 40,000 and represents over 10,000 new clients each year in consumer bankruptcy.

Chapter 13 Bankruptcy Forms Checklist

Author: Roilee Mandeville

Do you want free bankruptcy forms for your Chapter 13 filing? Declaring personal bankruptcy without an attorney requires submitting many legal forms yourself. As a 'pro se' (pronounced 'proh say') filer, the United States Bankruptcy Court is expecting you to exhibit 'due diligence.' A majority of the work is trying to figure out independently how to fill out the court forms. You need to complete many official forms before you can file them. If you visit the official download page of your local Bankruptcy Court, you'll see several forms listed in there. The page lists both business and consumer bankruptcy forms together. What's worse is the forms don't have any clear categories. For example, which forms are needed for Chapter 13 or for Chapter 7? Your initial obstacle is to research which official forms to use.

Chapter 13 Bankruptcy Forms Checklist to the Rescue

To make your task easier you should get a Chapter 13 bankruptcy forms checklist. You will see many websites offering free bankruptcy forms but only a few of them offers a checklist. If you happen to visit a website offering a free Chapter 13 checklist then do not hesitate to get it quickly. It is to your own advantage.

A good Chapter 13 checklist can tell you which form to use if you want to pay the filing fee in installments. Some of them contain due dates for each form. For example, which forms do you need to file after paying the court fees? Which forms can you file within 15 days?

Commercial VS Free Bankruptcy Forms

One of the benefits of using a commercial kit is convenience. A Chapter 13 bankruptcy kit can save you time and frustration in understanding the bankruptcy process. If you are planning to buy one, make sure the kit contains completed sample of each forms. A sample repayment plan can give you an insight on how to decide your own Chapter 13 plan.

Another important feature to consider is how recent the forms you are buying. The Federal Court updates the official forms from time to time as they see fit. Never buy from a seller that cannot tell you when they last updated their product. Using old forms can have negative consequences to your case.

What is Your Backup Plan?

If for some reason you decide that self-filing is too difficult for you, it's wise to have a backup plan. Filing personal Chapter 13 bankruptcy can be a daunting task for some individuals. For the average debtor, reading tons of instruction manuals can give them a headache. Having a free alternative plan is always a wise decision when things don't work out as you want them to.

Article Source: http://www.articlesbase.com/bankruptcy-articles/chapter-13-bankruptcy-forms-checklist-1227830.html

About the Author

Roilee Mandeville maintains a consumer bankruptcy website where you can find inexpensive bankruptcy filing solutions that will fit your budget. For a limited time you can get a free Chapter 13 bankruptcy forms checklist. A handy guide you can use when filing bankruptcy. The FREE checklist will only be available for a few days so hurry and get it today!

Bankruptcy Confirmation: Chapter 13 Bankruptcy Information

Author: Simon Volkov

Bankruptcy confirmation is required under the United States Bankruptcy Code for all debtors filing Chapter 13 protection. Commonly referred to as "reorganization bankruptcy", debtors must submit proposed repayment plans at the time of filing or within 15 days of petitioning the court.

The purpose of bankruptcy confirmation hearings is to ensure debt repayment plans adhere to new bankruptcy laws. Chapter 13 payment plans must include payment amounts to each creditor along with payment dates.

Once bankruptcy refinance plans are approved, debtors submit payments to the court Trustee. Chapter 13 payments are generally paid on a bi-monthly or monthly schedule. Trustees distribute payments to creditors until debts are repaid.

Shortly after bankruptcy petitions are filed, notification to creditors is sent out to inform them of the bankruptcy filing and scheduled date of the 341 creditors meeting. 341 meetings give debtors the opportunity to meet face-to-face with creditors and explain their financial situation and ability to repay debts. Creditors can agree to accept a reduced payoff, lower interest rates, or remove late fees and penalties.

Information obtained at creditor meetings is given under oath. Debtors who provide false information are subject to criminal charges and their petition of bankruptcy will be denied.

In 2005, Congress enacted new bankruptcy laws which have made filing bankruptcy protection more difficult. The Bankruptcy Abuse Prevention and Consumer Protection Act require debtors to repay a portion of their debt and undergo credit counseling.

Few people can abide by BAPCPA regulations without legal counsel. Unfortunately, locating bankruptcy attorneys has become more challenging and expensive because the new laws hold lawyers accountable for information provided by their clients.

Several bankruptcy lawyers changed to other legal fields; leaving a deficiency of lawyers willing to assist with petition filings. Those who have remained in this field of law charge higher fees to cover increased business insurance premiums and potential litigation fees.

Debtors filing for Chapter 13 bankruptcy are required to undergo the means test to determine the amount of debt to be repaid. The means test compares debtors' income to that of their states' median income level.

When income is equal to or greater than median levels, debtors must file Chapter 13 and develop a confirmed debt reorganization plan. If income falls below median income, debtors might qualify for Chapter 7 which discharges all outstanding debts.

Bankruptcy repayment plans typically extend between three and five years. Debtors are prohibited from incurring new debt during the repayment period without court authorization. Chapter 13 payments are in addition to normal household expenses. One unexpected expense could cause debtors to fail out of bankruptcy.

If debtors are unable to adhere to bankruptcy repayment plans, creditors can petition the court seeking dismissal. If approved, debtors lose protection from the court and creditors are allowed to proceed with collection actions.

Bankruptcy confirmation can help debtors overcome financial hardships. However, individuals should become informed about the advantages and disadvantages of this action. Research bankruptcy alternatives including: debt consolidation, debt settlement, credit counseling or budgeting, to determine if similar results can be achieved.

Article Source: http://www.articlesbase.com/bankruptcy-articles/bankruptcy-confirmation-chapter-13-bankruptcy-information-1901742.html

About the Author

Simon Volkov is an author and real estate investor who specializes in buying houses to help homeowners avoid foreclosure and bankruptcy. He has published numerous articles about personal bankruptcy, bankruptcy confirmation, tips for hiring bankruptcy lawyers, failing out of bankruptcy and bankruptcy alternatives via his website at www.SimonVolkov.com

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