Bankruptcy

Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy or 'wage earner's plan' is one of the two main forms of personal bankruptcy as defined by law. It is the supervised legal reorganization of a debtor’s estate in order to repay his creditors. Many people who ask “What is chapter 13 bankruptcy?” are surprised to find out that with chapter 13 bankruptcy, a debtor's assets are not always fully liquidated and he is usually allowed to keep his home. There are many such facts and information that a common person is not aware of. So here we are making an effort to provide all the relevant information on chapter 13 bankruptcy to help you make understand the basics and make the right decision.

What is Chapter 13 Bankruptcy?

If you are considering bankruptcy and your debt to income ratio is low enough that you believe you can meet minimum monthly payments after you restructure your debt and your financial framework, you may want to consider a Chapter 13 bankruptcy. Chapter 13 in bankruptcy or wage earner bankruptcy is ideal for many situations, such as when you want to protect assets that would otherwise be seized to repay loans. Wage Earner's Plan is not for everyone; however, reviewing the following information on chapter 13 bankruptcy and asking yourself some critical questions can help you decide whether it is Right for You. Additionally, retaining the services of an attorney will be imperative as you begin your terrifying journey through the maze of paperwork.

Is it Right For You?

It is tough to determine whether a Chapter 13 bankruptcy is right for you, especially if the mere thought of filing bankruptcy is enough to scare you. However, when it becomes a necessity, the wage earner's plan could be ideal. It is important that you review your personal situation very closely and answer tough questions critically to determine whether Chapter 13 bankruptcy is right for you. Some questions you could ask yourself include:

• Do you have assets that you don't want to have seized, such as a car or home?
• Is your debt-to-income ratio high enough to sustain monthly payments on your debt?
• Are most of your debts secured, such as a mortgage or car loan?

If you answered yes to the above questions, a wage earner's plan bankruptcy could be the right option for you. Ultimately, however, when deciding whether to file for Chapter 13 bankruptcy, one of the most important things you can do is retain the services of a qualified attorney as soon as possible.

Do You Need an Attorney?

Retaining the services of an attorney at the earliest possible moment in your bankruptcy journey is absolutely imperative for a number of reasons. Chapter 13 bankruptcy filing will involve a great deal of debt negotiation and restructuring, something your attorney can handle for you with ease. Also, when negotiating on how much income to withdraw each month to pay your debt, your attorney will make sure you keep enough of your earned income to keep food on the table for you and your family. Bankruptcy does not have to be scary; with a attorney by your side, you'll find the journey a lot easier.