Chapter 13 bankruptcy is one of several types of bankruptcy. This special filing is used oftentimes when an individual is at risk of losing their home and to stop foreclosure. You can speak to a bankruptcy lawyer san Diego to learn more about Chapter 13. In fact, you should hire a bankruptcy lawyer San Diego if you plan to file Chapter 13. In the meantime, here are a few facts important to know about Chapter 13 bankruptcy.
Pay Off Debts
When you file Chapter 13 bankruptcy, your debts are not eliminated as they are when Chapter 7 bankruptcy is filed. Instead, you are given a payment plan and a specific period of time in which to repay the debts that you owe. The amount that you will pay each month is based upon the amount that you can afford to pay. A judge will look at your income stubs as well as the debts owed to determine this amount.
You must Qualify
To file Chapter 13 bankruptcy, you must qualify. Usually those who do not qualify for a Chapter 7 bankruptcy filing will qualify for a Chapter 13 filing.
You need an Attorney
If you want to file bankruptcy, you need an attorney to represent you. There are far too many complex laws and steps to take to attempt to file on your own. Never try to file Chapter 13 bankruptcy on your own.
Both secured and unsecured debts should be included in a Chapter 13 plan of repayment that is presented to the courts. Any money that you owe should be included in the plan.
Stop Collection Calls
When you file bankruptcy, creditors are no longer allowed to call you in attempts to collect a debt. Alleviating these annoying calls is certainly a step in the right direction.