If filing bankruptcy is a consideration for you, you are undoubtedly having a hard time managing your current debt. Filing bankruptcy can be intimidating. Here are a few things you need to know about filing Chapter 13 in Valdosta.
Chapter 13 doesn’t Make Your Debt Disappear
There is no bankruptcy program that will simply make all your debt go away. Chapter 13 in Valdosta is designed for those who have a problem with the immediate payment of the debt and not with income. Also known as the Wage Earner’s Bankruptcy, this type of bankruptcy doesn’t require the liquidation of all assets. In fact, you may even be able to keep your home if you’re able to keep up with the payment terms. This is the biggest difference between Chapter 13 and seven bankruptcies.
There are Limits
There is a limit to the debt you can have to be eligible for Chapter 13 filing. Your unsecured debts must be less than $394,725.00. Unsecured debt can include things such as credit cards and installment loans. The secured debt must not surpass $1,184,200.00. This type of debt includes mortgages and auto loans. If you have debt that surpasses these numbers, you will need to speak with your bankruptcy attorney regarding options that may be available to you.
Bankruptcy Offers a Fresh Start
Chapter 13 bankruptcy allows you to pay your debt over time. Many people think of bankruptcy as a last resort and effectively the end of their creditworthiness. This could not be further from the truth. Bankruptcy is your legal chance to pay what you owe on easier terms and build your credit up once again.
If you have questions regarding your financial situation and you’re wondering if filing Chapter 13 is the best option for you, contact Charles Farrell Law for your free consultation today.
