Sep. 06, 2021
When Should You File for Chapter 13 Bankruptcy?
Chapter 13 may have many people thinking negative thoughts in regard to their finances. However, this may seem like the only available option left when you are unable to repay your debts any longer. For those who do not have enough income to repay part or all of their debts, Chapter 13 bankruptcy seems to be the answer. It may be worth it instead of dealing with demands from creditors and not having the income to pay. However, it is best to consult with a bankruptcy attorney Greensboro NC, so they can go over all the ins and outs with you.
What is Chapter 13 bankruptcy?
Similar to Chapter 11 bankruptcy, chapter 13 primarily applies to businesses. A reorganization plan is submitted in both cases, and it is there to protect assets against foreclosure or repossession. Chapter 7, on the other hand, is more severe and wipes out all assets except those that are protected.
To become eligible for a Chapter 13 bankruptcy, a person must not owe more than $419,275 in unsecured debt. This pertains to personal loans or credit card bills. In regard to secured debts, a person must not have more than $1,257,850 which includes both car loans and mortgages.
Chapter 13 allows efforts to stop the foreclosure process on your home. It can suspend proceedings in regard to foreclosure and any debts owed. While it does not completely get rid of the debt, the court will be able to put together a plan. Some of your income should be freed up which allows you to keep your home by making regular mortgage payments. If you have any questions, a bankruptcy attorney in Greensboro NC can answer them.
The Process of Chapter 13 Filing
When you have finally decided to make the decision and file for Chapter 13 bankruptcy, you should first search for bankruptcy lawyers in Greensboro NC, or an attorney affiliated with the law office of Mercedes O. Chut. Your attorney will be able to provide you with a free consultation and the costs that you would need to file.
Normally, the filing fees and fees charged by a bankruptcy attorney are all you will need to gather. It is typical for you to pay a filing fee of about $313 and provide a list of creditors as well as the amount you owe. You will also need to provide a breakdown of your monthly expenses, all tax information that includes your most recent tax return, and a list of all of your property including leases and contractors in your name. Your attorney will also ask for proof of income. These things will be handed over to your attorney who will then begin the filing process.
How can an attorney help?
Your attorney can greatly help out if you are thinking about filing Chapter 13 bankruptcy. Unfortunately, although it can be filed without an attorney, this process can be extremely difficult. If you fail without an attorney, your ability to file again in the near future could be greatly impacted.
A bankruptcy attorney High Point should be filed to help you do a variety of things such as:
- File all statements, schedules, and local forms on time and completely
- File a plan within a specific amount of time
- Provide needed notices to creditors
- Comply with all local procedures
- Appear at hearing and creditor meetings
There are things that you may not be able to do on your own such as how to represent yourself successfully while still complying with certain procedural rules. Even though the cost to hire a bankruptcy attorney may be a bit on the expensive side, it is well worth it, and a Greensboro NC bankruptcy attorney will be more than happy to help out.