Caitlina Fuller asked:




Chapter 13 bankruptcy is just another way to reduce your debt but to do so while keeping some of your valuable assets. Arizona bankruptcy lawyers can help you handle a chapter 13 bankruptcy and walk you through the process so everything goes as planned as goes as quickly as possible. You might be wondering whether a chapter 13 bankruptcy is something you would be able to go through. And, if you are over your head in debt and don’t know what to do but aren’t interested in losing your big assets like your home then a chapter 13 bankruptcy is the perfect opportunity. Phoenix, Arizona bankruptcy lawyers will explain to you that by filing this type of bankruptcy you make a plan to pay back your debts over a period of time, which is usually three to five years. The great thing is that you can keep valuable assets that are not covered by exemptions. With a Chapter 13 individuals will be making monthly payments and in some cases biweekly payments so anyone filing for this type of bankruptcy needs a constant source of income.
There is then a confirmation hearing in a court of law. At this meeting the proposed repayment plan will be reviewed and it will be determined whether or not the plan meets the Bankruptcy Code. The biggest difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy is that in 13 individuals keep their property and assets and make payments based on their income in order to pay off creditors.

With this type of bankruptcy the debtor does not see his debts erased but rather must make appropriate payments until the plan is achieved and a discharge is received. While the debtor is in repayment he will be protected by things such as garnishments, lawsuits, and any other type of action by creditors. More debts are eliminated under the Chapter 13 plan than under the Chapter 7 plan.

You need to evaluate your financial situation and determine which bankruptcy is the best option for you. You will want to talk with a lawyer to get some guidance to ensure you are on the right path and making the best decisions for you. After reviewing your financial situation, your assets, and your income stream you will be able to make the best decision. Make sure all your questions are answered before going ahead, though.

http://chapter13bankruptcynow68.wetpaint.com/

Amit Patel Bhawani asked:




Chapter 13 Bankruptcy means to file for bankruptcy under chapter 13. The debtor files for chapter 13 and along with this, a repayment plan has also to be submitted. A plan called as wage earner plan is set by the lawyer and it is approved by the judge. The plan consist of the monthly deductions which is passed by the judge for paying to the creditors. This plan will suggest that you can pay your mandatory debts over the three or five year repayment period. Once the wage earner plan gets completed, lasting between 3 to 5 years, a discharge is granted by the judge. If the debtor fails to pay between 3 to 5 years, then he will be fined for 10 years. It is important to know that within 6 months of completion of the wage plan, the judge will come to a decision whether the debtor has to be given a discharge ( to be released from his debts) or not. The judge will decide on the basis of the debtor’s status with regard to the completion of the wage earner plan.
Chapter 13 bankruptcy is also called as reorganization bankruptcy. Before you file for bankruptcy, you must seek for advice from a credit counselor or from an approved agency. In my opinion, chapter 13 bankruptcy is not meant for everyone. When you file for chapter 13 bankruptcy, you must be aware of the fact that you will have to agree in the court with proof that you can repay all or a portion of your debts over a time period. According to chapter 13 bankruptcy, you are allowed to keep your property with you but you will have to use your income for repayment of your debts. Hence, to file a chapter 13 bankruptcy, you must have a stable income so that your deductions will be done.

Filing a chapter 13 bankruptcy includes filling of forms whereby you have to disclose your property and debts etc. Filing a chapter 13 bankruptcy is meant for those who can pay off certain debts over a period of time and who have enough income standing in order to be eligible for filing chapter 13 bankruptcy. In chapter 13 repayment plan, you will have to show how you propose to pay your mandatory debts relating to your child support, tax arrears etc and also details about being able to pay your other debts over a period of time. When you submit your repayment plan in the court, you must have valid proof to do so. You must also have valid proof showing that you can pay your mandatory debts and perhaps repay all or a portion of other debts, over the three or five year repayment period.

Most of the courts prefer the debtors to file chapter 13 bankruptcy code over other bankruptcy laws. Once the court approves the chapter 13 plan, the creditors can take no action outside the plan’s scope to collect their debts. Once chapter 13 plan is fulfilled and completed, the debtor gets a discharged by the court. To be discharged means the debtor is released from his debts. A discharge is granted by the judge once the debtor completes the wage earner plan consist of proposed schedule monthly deductions that is approved by the court and it is this monthly deducted amount will finally go towards paying the creditors.

http://sites.google.com/site/chapter13bankruptcynow68/using-chapter-13-bankruptcy-to-stop-foreclosure