The Basics of Chapter 13 Law

When it comes to filing for bankruptcy, things can get confusing. You hear a lot of different terms thrown around but it's hard to know what is important and applies to you. Chapter 13 law is often brought up and this applies to you if you are a individual that is filing for bankruptcy. There are a few basics you should know about the law.

Chapter 13 law is also called a wage earner's plan, which is mean for an individual. It allows the mto develop a plan to pay part or all of their debt over the course of 3 to 5 years. Chapter 13 is an option for individuals over chapter 7 law, which involves liquidation.

Some of the benefits to Chapter 13 is that it can help save your home from foreclosure. If you file under chapter 13 you can stole foreclosure proceedings and may be able to pay off any delinquent mortgage payments over time which will let you hold on to your property. Chapter 13 law also protects those who re third parties who may be liable with the debtor through "consumer debts".

To be eligible to file for Chapter 13, you must fall into a few guidelines. Even if you are self-employed or operation an unincorporated business and are an individual, you can be eligible. Unsecured debts must be less than $360,475 and secured debts less than $1,081,400. You can not file under Chapter 13 if a prior bankruptcy petition by yourself was dismissed in the past 180 days because of failure to show up in court, or if you voluntarily dismissed it yourself. So be sure that when you do petition for bankruptcy, you follow through on everything that needs to be done.

So now that you have the idea of the basics, you may want to look into getting a chapter 13 lawyer before applying yourself. There's still a lot of little details and loopholes about how it actually all works and a lawyer will be able to get through all the jargon that you may not understand so you can get the best plan set up for you without being taken advantage of.

Filing for bankruptcy is a daunting thing, but it can be done professionally and you can get out of your debt. There's always light on the other side and if you file for the right chapter that'll work for you, you'll be on the other side quickly and back on your feet.


------

The Law Offices of Adam C. Gomerman specialize in Chapter 7 and Chapter 13 law. Our NY bankruptcy lawyers have years of experience dealing with bankruptcy and loan modification help.