If you along with bankruptcy attorney have decided to file a case for Chapter 13, it becomes important on your part to have a clear understanding about the matter. To begin with, Chapter 13 bankruptcy in Plainfield, IN unlike Chapter 7 is far away from the concept of liquidation. Filing for Chapter 13 can relieve debtors as they can repay loans to creditors slowly as approved by court.
Features of Chapter 13 bankruptcy in Plainfield, IN
Chapter 13 bankruptcy allows financial reorganization to debtors instead of other available solutions such as foreclosure and liquidation. Generally, the concept of Chapter 13 bankruptcy permits debtors to keep their properties as per compliant to law. It might also include you to pay more to attorney than the case had been with Chapter 7. Below are mentioned some of the features of Chapter 13 bankruptcy:
* Commitment in time: Chapter 13 bankruptcy differs widely with Chapter 7 in its terms and conditions. Whereas Chapter 7 is a short process and completes within few months, Chapter 13 is a long-term procedure, which might take you to make regular payments for at least 3 – 5 years. This long-term plan can also differ depending upon your income status.
* How to pay: Payment plan is decided on the basis of how you can pay off to your creditors. Chapter 13 bankruptcy is a good alternative to rearrange your debt via paying creditors on time. Here your disposable income is assessed, as this would be taken as regular payments to debtors. Despite this alternative gives priority to claims being made by tax debt, child support etc.
* Restrictions: Unlike Chapter 7, there are some restrictions in Chapter 13 bankruptcy. It is obvious that you need to make regular payments to your creditors but you cannot incur heavy amount of debt till is being approved by the court. Along with you need to maintain insurance on the collateral. It is also one of the important features of Chapter 13 bankruptcy.
Eligibility criteria to file for Chapter 13 bankruptcy in Plainfield, IN
In order to qualify for Chapter 13 bankruptcy, you need to meet some eligibility criteria. First of all, you need to be a regular earner in order to make the repayments on time. Prior to filing for this Chapter, you need to attend a six months counseling session for credit. Another important eligibility criterion is your monthly gross income needs to be more than size of your family. If you have already filed for Chapter 7 once, you would have to wait for four years before next filing.
Advantages of Chapter 13 bankruptcy
There are several advantages to be availed when filing for Chapter 13 bankruptcy. When filed the case, legal action stops against you immediately, which is one of the main benefits. As it never involves liquidation, you property can be saved. Even you can be free of some of your debts. After you have cleared all your debts, you are again liable to seek loan from others.
Consider The Wright Law Group, LLC, as they are experienced into the field and can make you understand features of Chapter 7 and Chapter 13 bankruptcy respectively in Plainfield, IN.
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