Filing for bankruptcy is a decision with all kinds of ramifications, making it imperative that you find the type of protection that's right for you. So what will it be... Chapter 13 bankruptcy? Chapter 7? The answer lies in whether you are looking to reorganize your debts or to eliminate them altogether. For those looking to replace their unreasonable monthly payments with a more realistic payment plan, the Connecticut bankruptcy attorneys at the Law Office of George H. Weber, LLC recommend filing Chapter 13 bankruptcy.
A common misconception about bankruptcy is that everyone that files for it is looking to get out from under their debts altogether. While this is true for some, there are many individuals with regular income who want to pay their debts but are currently unable to do so. Chapter 13 allows for this possibility, and here's how it works...
Under court supervision and protection, debtors are allowed to propose a payment plan that will enable them to pay off their debt in three to five years. If the court approves of the plan then you as the debtor will make the agreed upon payment amount on a monthly basis to a "Chapter 13 Trustee," who then disburses it to your creditors.
The protection you receive from Chapter 13 is that for the three to five years that your payoff plan runs creditors may not continue or start collection efforts against you. Moreover, a Chapter 13 bankruptcy is likely to stay on your credit report for seven years, whereas a Chapter 7 bankruptcy will stay on your credit for 10 years.
As for who is eligible to file for Chapter 13 protection, here's how it breaks down. Individuals with unsecured debts of less than $336,900 and secured debts less than $1,010,650 may apply; even those who are self-employed or run unincorporated businesses. A corporation or partnership, however, is not eligible to file Chapter 13.
If your monthly bills have become an insurmountable obstacle but you are still committed to living up to your fiscal responsibilities, Chapter 13 bankruptcy allows you to do just that. Call today for a free consultation with the experienced bankruptcy lawyers of the Law Office of George H. Weber, LLC, and learn more about Chapter 13 and whether it is the right path for you.
Source: http://www.ArticlePros.com/author.php?George Weber
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