If you are behind on your bills and have lost hope that you will be able to pay them back, you may be considering bankruptcy. The U.S. Bankruptcy Code has two distinct chapters for individuals, Chapter 7 and Chapter 13. While many people elect to erase all of their debts with Chapter 7 bankruptcy protection, there are some cases where Chapter 13 is a better option.
The most common reason that debtors choose Chapter 13 over Chapter 7 is because they are behind on their mortgage or car loan but they don’t want to lose their property. With Chapter 13 bankruptcy protection, you can make up the missed payments and keep the original terms of the loan. If you have some equity in your home and you don’t want to lose it, Chapter 13 bankruptcy can help you negotiate an agreement with your lender. A Chapter 13 Bankruptcy Attorney in Royal Palm Beach can discuss your options with you to determine if this kind of bankruptcy is a good choice in your situation.
If you want to accept responsibility for your debts and have a desire to pay them off, Chapter 13 may be right for you. Chapter 13 of the bankruptcy code allows debtors to make payment arrangements with their creditors that are enforceable through the court. Some people try to make these arrangements on their own and get frustrated with the creditor’s processes. A Chapter 13 Bankruptcy Attorney in Royal Palm Beach can evaluate your situation and help you decide if you need the bankruptcy court to intervene on your behalf.
Some debts cannot be discharged in Chapter 7 bankruptcy. However, those nondischargeable debts can be included in a Chapter 13 repayment plan. Even if the majority of your debts are discharged through Chapter 7 Bankruptcy, you will still be responsible for student loans, taxes, alimony and child support. If part of your overwhelming debt includes student loans, taxes or family support, you may be able to ease your financial stress by filing Chapter 13 bankruptcy.
Chapter 13 bankruptcy lawyers can review your assets and debts and help you determine the best way to handle your financial obligations.
