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Plus Side For Claiming A Chapter 13 Bankruptcy

by JackMerrifield

Nowadays it is extremely common for people to be in debt. The poor economy has put people in tough situations because of job loss, pay or hour decreases and property value plummeting. Filing for a Chapter 13 bankruptcy may be an option for many to help relieve some of that debt.

When you say the word bankruptcy most people gasp. It has always been looked at as a bad thing. Truth is that it is not. It can be an extremely helpful option for those in debt and who are not going to be able to get themselves out of it while making sure wages are not garnished and belongings are not taken.

You still have options with filing. These options will depend on your debt to income ratio. You of course will need to bring home less than what your debts are.

Bankruptcy can be filed through the court without an attorney or an attorney can of course be hired to assist in the process. Going at it on your own is can be less expensive but can be confusing and extremely time consuming. An attorney will do all the work from determining which type of bankruptcy will suit you best, filling in and filing all paperwork needed for the courts and representing you in front of the judge. They will also be able to help you protect any assets that the court would want you to try and sell or take from you as payment. Cost will vary between location and services provided.

A chapter 7 filing is for people in deep enough debt that will not or cannot be realistically paid off by their income. Pretty much all debt is erased by this form. A notification can stay on your credit report for up to 10 years and may hinder your approval for things in the future.

Chapter 13 is more like a debt consolidation. This is for those who have significant debt but have will be able to pay it off at a percentage and in a realistic amount of time. The monthly amount will be determined once again by your debt to income ratio. This process can take longer and also will show up on your credit for up to 10 years.

Always have a consultation with a lawyer to see what fits your needs best. You should be able to easily find one that does this for free. A Chapter 13 bankruptcy may or may not be for you but it is worth finding out.

About the Author: Frank Cole

A Knoxville Chapter 13 bankruptcy attorney will help debtors through the processes of filing for debt relief from the courts. You can find a Knoxville bankruptcy lawyer by doing a local search query on the Web.

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Plus Side For Claiming A Chapter 13 Bankruptcy