Dealing With Chapter 13 Bankruptcy May Be Difficult But Not Impossible

By Author: Busby Lee
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Dealing with chapter 13 bankruptcy often calls in the need for one to possess a good plan or idea. Since, as it would be the case plans at the end of the day not only go a long way towards accomplish goals in business, relationships but for that matter in life as well. Thus, the same tends to go for Chapter 13 bankruptcy also, because at the end of the day, a plan may very well go on to bail out a person from any precarious situation that comes attached with a chapter 13 bankruptcy.

Get expert help while time prevails

In order to tide over chapter 13 bankruptcy, it makes sense if clients were to get in touch with a legal expert and go ahead and formulate a Chapter 13 plan that would meet their financial goals. Lasting from anything like 3 to 5 years, the same plan can also come in handy towards curing arrearages on a mortgage, elimination of a second mortgage, discharging credit card debt, reducing the money off a car loan and also paying off an IRS debt.

Common chapter 13 bankruptcy complications and ways to deal with them

Chapter 13 bankruptcy is no easy matter and it is bound to have its own set ...
... of complications. Thus, it all the more makes sense if one were to get a get understanding of all the complications coming under this section and get a good understanding of ways on how to better deal with them. Starting with:

Delinquent Mortgages

With quite a good number of Chapter 13 debtors lagging behind on their mortgages and seeking a way out of foreclosure, delinquent mortgage debt cannot be added to Chapter 13. This section is only restricted to past-due payments and associated penalties which can be repaid by an individual under Chapter 13 bankruptcy.

Further, as the case would be only current and future debts can be paid alongside the repayment plan and it means only the monthly mortgage payments can be taken into account during the means test. In essence, requiring one to have enough disposable income (after mortgage and other expenses) to go on and make any chapter 13 payments over a period of 3 to 5 years.

Situational Variances

As the case would be, it is perhaps the change in one's financial situation that prevents him or her from continuing the repayment plan. Further, if one were to lose their job or an important source of income while under Chapter 13 protection, the court allows for a change in the terms or the temporary suspension of payments. One can also get the bankruptcy converted to Chapter 7, provided all the requirements are met at the end of the day. Last but not the least, a person also has the choice to even get the case voluntarily dismissed or better still allow creditors to continue with the collection of payments.

A Chapter 13 bankruptcy in Houston, Texas is explained by bankruptcy lawyers in Houston. Learn more about Chapter 13 bankruptcy requirements for filing it, what to expect and what is not considered dis chargeable debts.