Chapter 13 Bankruptcy To Settle Debts Easily

By Author: Busby Lee
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Filing for bankruptcy under chapter 7 is really a good way of get rid of your debts. But, unfortunately everyone is not eligible to file chapter 7 bankruptcy. According to federal laws, the Bankruptcy Means Test decides that the debtor is eligible for filing under chapter 7. On the other hand, debtors who are found negligible according to the test are allowed to file for chapter 13 bankruptcy. The federal laws also state that only those debtors are allowed to file chapter 13 bankruptcy who have regular source of income. The regular income source debtors are obligated to fulfill all the dues within the certain time frame (3 to 5 years).

Here, debtors have to pay a fixed amount and submit the payment schedule to the court. Chapter 13 bankruptcy paves the right way for you to settle debts under a different set of contracts. For those debtors who are in the ownership of valuable assets like home, car, or other property (the property that is not covered by exemptions of chapter 7 bankruptcy) the chapter 13 bankruptcy is the right way for them to get rid of the debts easily without the tag of bad credit history. By filing for ...
... bankruptcy under chapter 13, you can easily retain possessions of your house, tools used in the work/business, car, retirement accounts and other assets used as collateral loan.

Like chapter 7 bankruptcy filing criteria, chapter 13 bankruptcy also has certain eligibility criterion to follow. The first thing to keep in mind is that the debtor should not have secured debts over $ 750,000 or unsecured debts over $250,000. Moreover, the due payments of student loans, drunken driving injuries, penalties for criminal offences, etc are not liable under chapter 13 bankruptcy. When you file for this bankruptcy in the court, you will have to submit the plan of scheduling payments after 15 days of filing the petition.

A trustee is also employed by the court to settle the issue between borrowers and creditors. A meeting is also organized (within 35 days) to validate the repayment plan after taking all aspects into account by the judge.

Today, a number of law firms have come up with filing process for chapter 13 bankruptcy. These firms have teams of bankruptcy attorneys who help you in filing and coming out with clear slate of the debts.

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