Chapter 13 Factors
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The purpose of a Chapter 13 bankruptcy evaluation is to help you decide if filing bankruptcy is right for you. A person has a choice between two different types of bankruptcy, either Chapter 13 or Chapter 7. Getting an evaluation for Chapter 13 bankruptcy will help you decided if its right for you, since the rules for both bankruptcy sets are very different. Also, obtaining a mortgage after bankruptcy is much easier for chapter 13.
It’s important to really understand what Chapter 13 really means before filing for Chapter 13 Bankruptcy. “Adjustment of Debts of an Individual with Regular Income” is the US Bankruptcy Code for filing Chapter 13.
A payment plan is created and the debt is re-organized in such a way that allows the debtor to afford the monthly installments. This is over a fixed period of time from three to five years. With that being said, an individual with a stable income source can file for Chapter 13 bankruptcy.
These following factors are considered in a Chapter 13 bankruptcy evaluation:
What are your reasons for filing bankruptcy? Are you hoping to put a halt to multiple lawsuits being filed against you? Are you at risk of eviction, repossession or foreclosure of your house? Has a sudden illness or unemployment burdened you with debt? What is the approximate amount of your total debt?
Do you have a good sense on what your monthly expenses entail? Figure out the types of monthly bills you have, which can be credit cards, personal loans, student loans, mortgages, medical bills, and student loans. Your real estate and car are valuable asset properties. Also determine the amount and source of your income, which can be employment, pensions, family support.
The above questions are necessary in a Chapter 13 bankruptcy evaluation to assess if you have the means to accomplish the payment plan. Just to reiterate, in order to properly pay the creditors, you must prove to have sufficient income to qualify for a Chapter 13 bankruptcy.
If you feel that filing Chapter 13 is right for you, be sure to contact an experienced bankruptcy lawyer for a free evaluation.