When the economy struggles, there are not many in the lower and middle class that survive in one piece. Often, financial compromises are made so that the most important bills and items can continue to be paid, on time. If your debt has caught up to you, you do have government-approved options at your disposal. Individuals that do not qualify for Chapter 7 bankruptcy may qualify for Chapter 13 bankruptcy, instead. When you are not sure how to begin the process, professional Chapter 13 Bankruptcy Advice Bel Air MD is available to you.
Here are three Chapter 13 bankruptcy facts to consider.
What is Chapter 13 Bankruptcy?
If you file and qualify for Chapter 13 bankruptcy, it means that you are earning a wage but cannot afford to pay for your necessities as well as your mortgage, comfortably. Under this option, a repayment plan will be put together based on your wages so that you can pay off all of your debts or most of them. The amount will be determined by the legal officials. If you hire a lawyer to guide you through the process, you have the opportunity to be given a plan that best suits your circumstances.
What Documents Will You Need?
To file for Chapter 13 bankruptcy, you are going to be asked to provide several documents. You will be asked to procure six months of pay stubs, tax returns and bank statements as well as the deed to the properties you own.
Possible Outcome
In the best case scenario, you will be approved for Chapter 13 bankruptcy and avoid foreclosure. It allows you to keep equity you have accumulated in your home, and help with your taxes and the IRS.
For more information, you are encouraged to seek Chapter 13 Bankruptcy Advice Bel Air MD.
