People who have either permitted or have unwittingly allowed their finances to spiral out of control can feel like they have few options. Fortunately, many people find that the best option for their particular financial situation is filing for bankruptcy. While this isn’t something that a person should think about without a fair bit of consideration, it is a viable option when every other recourse for their financial difficulties have been exhausted. For an attorney at law chapter 13 bankruptcy is often the best recommendation for some their clients.
Chapter 13 is for people who rate as high income earners. This is according to a means test that is given by bankruptcy attorneys to people who are interested in filing for bankruptcy. Should the individual’s income reach certain levels, they will be ineligible to file for standard chapter 7 bankruptcy. This is important because chapter 13 is a bit different in terms of its structure.
Chapter 13 bankruptcy has often been described by attorneys and financial experts as a legal repayment plan. Unlike repayment plans that may have been negotiated by creditors and their debtors, this repayment plan is issued by the courts. Repayment plans can last anywhere from 3 to 5 years and it repays either a portion or the full amount of money that an individual or couple owes to creditors.
The amount owed to individual creditors can be negotiated down by the attorney. However, once the repayment plan has been structured by the courts, the creditors, as well as the individuals filing for bankruptcy, will have to adhere to this court mandated prepayment plan, unless it is changed by the court itself.
For an attorney at law chapter 13 bankruptcy is an excellent option for getting a person back on track when it comes to their finances. While it will still appear on a person’s credit report as a bankruptcy, satisfying these debts rather than simply wiping them out certainly is a better option for creditors. That’s why, if you have any questions about chapter 13 bankruptcy, or if you need to find out what type of bankruptcy you qualify for, you may want to take a look at the services found at websites like us .