The Basics of Chapter 13 in Richmond Bankruptcy
Bankruptcy is a legal way to get rid of your debts. There are two main kinds of bankruptcy: Chapter 13 and Chapter 7. Many consumers use it as a last resort when they have no other options. You may think filing is easy, but it is rather complex. You must file a petition with the court to start the process. The court will determine which bankruptcy you are allowed to file. If you don’t qualify for Chapter 7, you must file for Chapter 13.
Chapter 7 bankruptcy is primarily for debtors who don’t have sufficient income to pay debts. The qualifying assets are managed by a trustee for resell to pay creditors. Chapter 13 in Richmond is for debtors who have unsecured debts below $307,675. Undecided debts should be lower than $922,975. You must also have steady employment. Chapter 13 is ideal if you want to pay creditors while keeping allowed assets. It helps to think of Chapter 13 as a consolidation loan. Though you filed bankruptcy, it will not have as bad of an impact in your credit score like Chapter 7. You will not be working with the creditor directly, but the courts work out a reasonable payment plan for you. You are given up to five years to clear debts after which you are discharged. I
It is highly suggested that you get a bankruptcy lawyer at Chandler Pecoraro PLC to help you through the proceedings. You could represent yourself, but laws change everyday. A lawyer will be better able to help you fill out the needed paperwork and remind you when to file certain documents. You need all the forms to be filled out correctly or your case may be dismissed. Filing bankruptcy means you are under code and creditors can seek no additional collection. A lawyer can make the creditors stay within the law.
Deciding whether or not to file Chapter 13 in Richmond can be a tough decision. There are pros and cons. However, bankruptcy may be the only way out of debt. Once you are discharged, manage your finances better so you can avoid having to file. You can start living a debt-free life when the procedure is complete.