If you claim bankruptcy under Chapter 13, you are in a better position to pay back your debt than if you claim Chapter 7 bankruptcy. Under Chapter 13, debtors propose a repayment plan to the court that extends over three to five years. The repayment plan allows the debtor to pay a portion or all of his or her obligation.
Avoiding Foreclosure
Speaking to a Chapter 13 bankruptcy attorney in Waldorf, MD can also help you avoid foreclosure. By filing Chapter 13, you can also make up missed mortgage or auto payments, stop the interest accrual on a tax obligation, or remit back taxes. If you can follow your repayment plan, your debts can be discharged in three to five years.
Making Repayments
You need to consult with a to about the repayment schedule and how Chapter 13 bankruptcy works. The amount you need to repay is determined by several factors. One of these factors includes your disposable income. Also, the amount of debt paid to creditors should be the same amount that would be received if the debtor chose to file under Chapter 7.
Keep Your Major Assets
As you can see, you need to work out a number of details when you choose to file for bankruptcy. That is why you need to schedule an appointment with a Chapter 13 bankruptcy attorney. Doing so will generally allow you to keep your major assets, such as an auto or home.
Bankruptcy lawyers add that a Chapter 13 bankruptcy is considered a reorganization of debt while a Chapter 7 is defined as liquidation. As a result, filing a Chapter 13 bankruptcy permits you to keep some important assets.
If you have fallen behind on your mortgage payments and cannot meet certain credit obligations, you need to schedule a consultation with a law firm, such as here Work with a specialist that regularly covers bankruptcy law.
