repayment

It 's true that the Chapter 7 bankruptcy is the most common form of personal bankruptcy that people think it is. It 's the nature of the request in an attempt to download or completely eliminate your debt in exchange for the liquidation of the assets you can have (which is usually not much). However, there is another type of bankruptcy known as Chapter 13, which created a payment plan, rather than simply the removal of your financial obligations.

Why follow Chapter 13? Well, first of all,may be forced to choose this path because you do not qualify for Chapter 7. Following recent changes in bankruptcy law, you must demonstrate its inability to keep your account in order to qualify for Chapter 7 and have your debts erased entirely.

Otherwise, you can schedule forced to make the repayment, in order to repay creditors at least part of what you owe them for the next three to five years. How is it determined? Well, there is a new and complicatedevaluation process called the means test that takes into consideration the monthly income and compares the costs to determine if you can, pay your debts.

You may also prefer this type of filing for bankruptcy, if you try to keep your belongings are, and in his home. Are you behind on your mortgage payments, you can use this procedure to help you get paid and do not lose at home. In Chapter 7, the unsecured debt that is wiped out, butprivilege holders, such as your mortgage and car manufacturers pay to maintain these assets.

How do you know if you qualify for Chapter 13? Well, for one, there is a limit to the amount of debt you owe. It 'pretty high, but you should be aware. The maximum amount of unsecured debt is $ 307,675, and secured debts should not exceed $ 922,975.

Also, if you put any kind of insolvency proceedings in recent years, can changeThings a bit '. For example, you can dollars are forced to pay creditors in full with a repayment plan, instead of billing for pennies on.

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