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Bankruptcy

Chapter 13 bankruptcy will allow you to pay off some of your debts

Chapter 13 bankruptcy is also called reorganization bankruptcy. This type of bankruptcy does not involve liquidating all of your assets and is generally a good idea if you have a lot of assets that will be hard to earn back, or that are worth a lot of money. If you have a steady income, then you will be able to file for chapter 13 bankruptcy, which will rearrange your debts and make it possible for you to pay off your debts without liquidating all of your assets.

This type of bankruptcy is also much easier to file and you will be able to file again sooner than you would if you had filed a chapter 7 bankruptcy. While you should not have to file for more than one bankruptcy at all, if you do end up in financial trouble again, a chapter 13 bankruptcy now instead of a chapter 7 can be helpful.

Essentially, when you file for chapter 13 bankruptcy, you need to fill out a form that lists all of your assets and how much you owe (including when you will owe that money). Then, you need to fill out a form to figure out what type of a repayment plan you are going to use in order to pay off these debts. A court will decide whether or not your plan is acceptable. If it is, then you’ll be required to pay off those debts in the order and timeframe that has been decided on.

If you are thinking about filing for Chapter 13 bankruptcy, then you should definitely see a bankruptcy attorney in order to make sure that you file everything correctly, and that your repayment plan is at all likely to be accepted by a judge. You should also make sure that you do pay off all of your debts during the reorganization. If you do not, then it is possible that you could have your debts foreclosed at the end of the reorganization period – which will mean that you will lose most of your assets.

Pay off debts to improve your credit score

Chapter 13 bankruptcy is a better choice than Chapter 7 if you can choose it instead. This is due to the fact that you will still be paying off some of your debts – which will mean that your credit rating is not quite as bad as it would be if you filed Chapter 7.