The decision to file for Chapter 13 bankruptcy isn't one that is made lightly by filers. It usually takes a lot of debt and the exhaustion of all other options before most people file. Often, there are other circumstances that play a part in the need to use this protection.
Some people associate bankruptcy with the ability to just have debts written off. What they don't realize is that there are different types of bankruptcies. A Chapter 13 bankruptcy is one that a person can file if they have too many exempt assets or an income that sufficient to repay some of their debts.
A Chapter 13 bankruptcy is a way that you can reclaim your finances if you are too deep in debt. In this form of protection, you will have to make payments to the bankruptcy trustee. These are used to pay off some of the debts that you owe.
Chapter 13 bankruptcy is an option if you make too much money to go through a Chapter 7 bankruptcy. This form of bankruptcy allows you to make installment payments over the course of three to five years. During that time, a trustee takes the single payment and pays creditors. At the end of the term, any remaining debts are discharged.
Filing a Chapter 13 bankruptcy means that you are going to repay some debts that are included in the case. Within 14 days of filing the petition, you have to file a repayment plan. This outlines how much you are going to pay and how often. These payments, which are typically bi-weekly or monthly, coincide with your pay and are made to the trustee.
You've wanted to open a business for some time, but you worry that you won't be able to get the capital you want. You're worried because of your past run-in with debt and bankruptcy.
The Chapter 13 bankruptcy is one that you have to be prepared to deal with for a long time to come. This isn't as fast as the Chapter 7 because you have to make payments when you file the Chapter 13. It isn't necessarily easier to file this form since you have to meet specific requirements.
There are a lot of considerations that you have when you are thinking of filing a Chapter 13 bankruptcy. Some of those that you need to think about revolve around what your life will be like once you file. It is likely going to change dramatically.
The former Lieutenant Governor of Arkansas, Mark Darr and his wife, Kimberly, have filed for Chapter 13 bankruptcy. Chapter 13 is a bankruptcy for wage earners with regular income who want to pay part or all of their outstanding bills pursuant to a three to five-year payment plan. This type of bankruptcy is used mostly by consumers to try and keep their homes by getting their defaulted mortgages back up to date.