You need to take a proper decision while deciding what is suitable for you. It is after you meet an attorney, you come up with two options. Either you can proceed with declaring Bankruptcy under chapter 7 or Chapter 13 Bankruptcy Attorney Tucson. When filing for chapter 7, you must meet a specific condition to qualify for chapter 7 bankruptcy. You may not meet the condition, which is crucial for filing chapter 7 bankruptcy. This guide will help you with giving some insight into chapter 13 bankruptcy. How is it more suitable than chapter 7?
What is Chapter 13?
When it comes to chapter 13, you are given three to five years to pay back your mortgage from your disposable income. It helps you to pay your missed mortgage payment and helps you further with unsecured debt. You don't have to lose your home under chapter 13 bankruptcy which is the best feature of this chapter. But you have to live under the vision of a court-appointed trustee, who will then collect and give payments to your creditors.
How does Chapter 13 Operate?
Chapter 13 bankruptcy somewhere has functions like Chapter 11. Since it is only filed by business organizations and like Chapter 13. The petition initiator comes with a plan to repay all his debts while securing his assets from repossession, unlike chapter 7, where he has to give all his assets to liquidation and lose his possession of the property.
Like any other bankruptcy, it doesn't relieve you from all debt. For example, there are still Child Support and alimony payments that are not forgiven. It also doesn't cover student loans and some types of taxes.
If you want to file bankruptcy under chapter 13, you have to meet these conditions.
- It would be best if you didn't have more than $419,275 as an unsecured debt. Credit card bills or personal loans
- You should not have more than $1,257,850 in secured debt. Mortgages and car loans.
You will be saved by foreclosure on your home, and it further suspends any present foreclosures. It stops current debt payments buying you time until the court passes the ongoing plans. You can expect positively about the court decision. That will give you help to fill your mortgage and save your house from debt.
Want help regarding bankruptcy solutions for Tucson chapter 13 attorneys? We suggest to you visit yusufovlaw to get a complete solution.
The Process of Filing Chapter 13 Bankruptcy
The first step is to get assistance from a bankruptcy attorney who can give you help in filing. You will also get a free evaluation by the attorney.
The whole process costs about $313 as fees towards the filing process. You have to share information like:
- A complete list of creditors and how much you owe to them.
- Total debt and details regarding your incomes
- A complete list of your property along with details of your lease.
- You need to provide a monthly budget and how you spend your money.
- Information of your tax along with recent tax return proofs and details of your unpaid taxes.
It would be best if you gave clearance that you do not have any bankruptcy petition dismissed on not appearing in the court for the last (180 days). For Chapter 13, you need to go through credit counseling between 180 days of filing the petition. Your repayment must meet the code of Bankruptcy; your judge will determine this before the final say.
Role of trustee in Chapter 13 Bankruptcy
The judge will appoint one trustee responsible for collecting money from the debtor and delivering it to the creditors. The debtor must not be present physically in front of the creditor at any time. In addition, creditors should not try to recover their debt with other means. So the role of trustee remains vital in Chapter 13 bankruptcy. We will refer you to yusufovlaw for more information.
Comparison between chapter 7 and chapter 13 Bankruptcy
Where chapter 7 is about liquidating your assets and paying the amount to the creditors. Though the only advantage is that filing chapter 7 is a short period task. Generally, it takes about six months to complete this process.
But in chapter 13, bankruptcy, you get more time to pay your debt without losing your home. You can also file chapter 13 bankruptcy after chapter 7.
It also covers you from your loan consigner's effort of collection. You can go for another petition after 2 years in chapter 13, unlike chapter 7, where you have to wait for eight years.
There are certain disadvantages involved with chapter 13 like the fees are much higher than chapter 7. You may need to pay a credit penalty after the petition. When you see the advantages, it is evenly compensated.
We have gone through the features of chapter 13, which gives you the convenience of paying your debt without losing your property. By increasing the tenure of your debt repayment, you are liable to pay a certain amount. A trustee of the court should collect that amount. If we compare this to chapter 7, you can see that chapter 13 has far better features. It does not liquidate your property, so you do not lose your home. However, it helps you pay off your debt with your income. The freedom of filing back in 2 years adds more to its value. Chapter 13 is a better alternative: get assistance from a chapter 13 attorney, Tucson, to help you.