US Chapter 13 Bankruptcy Laws Protect You!


San francisco bankruptcy lawyer

There were 97,287 bankruptcy filings in America during July of 2012, as reported by the Bankruptcy Institute. The number of bankruptcies in the U.S. decreased by 13 percent from 2012 to 2013. However, even then, under chapter 13 bankruptcy laws, there are still a rather hefty number of bankruptcy filings taking place.

Can i file for bankruptcy?” That is a question that anyone facing down a mountain of debt has asked herself at some point. Before you throw up your hands, however, and scream “I want to file bankruptcy!”, you should have some understanding of both chapter 7 and chapter 13 bankruptcy laws. That way, you will have a clear view of the benefits of filing for bankruptcy, as well as the repercussions.

Chapter 7 and chapter 13 bankruptcy laws pertain to the two types of personal bankruptcy chapters under which American debtors are permitted to file. Chapter 7 and chapter 13 bankruptcy rules differ in several ways. In chapter 7 bankruptcy, a debtor is typically permitted to discharge all of her debt, with just a couple of exceptions. However, in accordance with chapter 13 bankruptcy laws, the debtor must repay all, or at the very least, most, of her debt in conjunction with a mutually agreed upon repayment plan. The United States Bankruptcy Code requires that those filing under Chapter 13 bankruptcy laws are forbidden from owning assets valued at an amount greater than $922,975 in secured debt and $307,675 in unsecured debt.

Of course, disadvantages to filing for bankruptcy under chapter 13 bankruptcy laws abound. For example, chapter 13 bankruptcy laws codify that the bankruptcy filing continue to be listed on the credit report of the debtor for 7 to 10 years. This can make it almost impossible for filers to gain approval for a mortgage, a credit card, or a car loan from a lender without obtaining a credit worthy cosigner during that time period. As well, under chapter 13 bankruptcy laws, the debtor must face the distasteful obligation of standing in front of a judge and admitting on the record that she is insolvent. This is particularly hard for those filers who, due to serious financial hardship under chapter 13 bankruptcy laws, are compelled to file for chapter 13 bankruptcy due to an act of God, such as a serious medical illness or a natural disaster, i.e., an earth quake.

However, so too are there many benefits of filing bankruptcy. For some people, the benefits of filing under chapter 13 bankruptcy laws can outweigh the disadvantages of doing so. The greatest advantage of filing for personal bankruptcy is that doing so wipes out the majority of debt owed by an indiviual, making it almost 100 percent prohibitive for most, if not all, of those companies and people to whom a debtor owes money to collect payment.

There are many bankruptcy ghost stories floating around that scare prospective filers under chapter 13 bankruptcy laws. However, a good local bankruptcy attorney can provide anyone with answers to all of her chapter 13 bankruptcy laws questions. Federal chapter 13 bankruptcy laws mapping out the course of, and requirements for, individual filings under chapter 13 bankruptcy laws apply in equal measure to each and every person filing for personal bankruptcy under chapter 13 statutes. You will get a fair hearing when you file for bankruptcy, regardless of your station in life. Of that you can be sure. Read more like this.