Why do we recommend you go for chapter 13 bankruptcy? Reasons illustrated

Chapter 13 insolvency is a repayment plan that endures 3-5 years. The length of the repayment plan can be deterring for certain individuals and Chapter 7 bankruptcy might appear to be at first more ideal. In any case, Chapter 13 enjoys many benefits, including some that are not available in a Chapter 7, and it could be the best answer for your drawn out monetary wellbeing.

The "Pay What You Can Afford" Solution to Your Debt

Chapter 13 allows you to make one regularly scheduled repayment to a chapter 11 bankruptcy trustee that covers your debts as a whole. Your entire repayment plan is determined on the basis of your budget, which you set up with your bankruptcy lawyer for approval by the Bankruptcy Court. Your financial plan allows you to pay what you can manage. Your payment plan is a blend of your exact month to month expenses, IRS guidelines, and norms of the Chapter 13 Trustee. Your income deducted the above mixture of expenses brings about the sum you pay to a chapter 11 bankruptcy trustee. The sum you pay to the bankruptcy trustee is also called your optional pay.

Chapter 13 Bankruptcy Discharges Debt

Since you are paying what you can manage, you will most likely be unable to pay 100 percent of your debt over of 3-5 years. In most of Chapter 13 bankruptcy cases individuals don't repay 100 percent. As a matter of fact, individuals often pay only the amount initially owed.

The amount of financial liabilities you fail to take care of throughout your Chapter 13 Plan is dealt with the same way it would be in a Chapter 7 - your dischargeable debts are cleared out, so you get a new beginning!

What happens if you end up paying off 100 percent of your debt over of 3-5 years? What is the benefit of Chapter 13 then? Chapter 13 bankruptcy offers individuals with the most remarkable debt repayment plan available.

Your Chapter 13 bankruptcy will hold any further interest back from piling on dischargeable debt. You simply need to take care of the balance owed on the day you petition for bankruptcy. For instance, if you are paying 18% compound interests on $30,000 of Visa debt, then, a Chapter 13 bankruptcy could save you roughly $19,000 in interest over of 5 years. Basically you can be all the way free and clear debts in 3-5 years, which might be unthinkable without bankruptcy.

Save Your Home With Chapter 13 Bankruptcy

In Chapter 13 Bankruptcy you can take past due mortgage on your home loan and pay them back over of 3-5 years in your repayment plan. In bankruptcy, past due mortgage on your home loan are classified "arrearages." As lengthy as you record your Chapter 13 insolvency preceding the foreclosure sale date, then you can benefit from Chapter 13 advantage.

So, if you have been sleeping on the idea of filing for bankruptcy, contact 888-297-6203.

What Qualities To Look For In A Bankruptcy Attorney?

 

If you have been considering filing for bankruptcy, your first move must be to determine the right Chapter 13, bankruptcy attorney. With numbers of lawyers offering bankruptcy services, it is imperative to seek the following qualities in them:

Free consultation

Lawyers helping people with their financial challenges will usually offer a free consultation. However, you are not advised to invest your time and energy anticipating any lawyer will offer free bankruptcy counsel. You should always look for one that has demonstrated experience in offering effective and free consultation for bankruptcy. 

Extensive experience

As you are dealing with your financial obligations and struggling to decide on a strong financial future, you will want to work with a bankruptcy lawyer that has years of experience in providing effective and result-oriented bankruptcy counsel for people from various age groups and financial liabilities. An attorney who has demonstrated experience in working with a variety of clients and solving their financial struggles is an ideal choice for you.

Detailed oriented

In addition to experience, an ideal bankruptcy attorney will have an eye for detail. Details are essential in bankruptcy counseling, and a lawyer who has been recognized for being thorough and meticulous is the right way to ensure that you gave the correct and perfect representation for yourself. Upon meeting your bankruptcy attorney for the first time, check to see if they are organized. Do their staff treat you well? Have you been kept waiting for a long time before the meeting? Is the lawyer’s office free of clutter? All these details matter while choosing the right bankruptcy attorney to represent your case.

Have up-to-date legal knowledge

This requirement is actually the deal killer if not properly met. Your prospective attorney should have up-to-date bankruptcy legal knowledge. Laws and rules applicable to this specialized area of law frequently change, and if a lawyer fails to keep up, they risk a poor result in your case. Be sure to ask how many bankruptcy cases the lawyer has dealt with so far. If you are not satisfied with their experience baggage, consider looking elsewhere.

Personality

Typically, you have to be free enough to get along with your lawyer. Handling financial challenges is demanding, and you will want a lawyer whom you are comfortable communicating with and whom you believe comprehends your specifics. One of the major complaints clients have as to legal representation is the lack of communication. At the time of your initial consultation, it is perfectly fine to ask for client testimonials and references. This is the time to judge if this lawyer is right for you.

Recovery Law Group, in this regard, makes an ideal avenue for you to stop and find the right bankruptcy lawyer to represent your case.

Bankruptcy attorneys at Recovery Law Group are reachable here: 871 Coronado Center Drive Suite 200

Henderson, Nevada 89052.

Consult their attorneys at +1 888-297-6203.

When is Chapter 13 bankruptcy your last resort?

 

Even though you can file for chapter 7 bankruptcy, there are certain circumstances while filing for chapter 13 bankruptcy may be more beneficial than filing for Chapter 7 bankruptcy.

Gain on a car loan and mortgage in Chapter 13

In Chapter 13 bankruptcy, you are allowed to make up for the missed payments over a period of time and keep the car or home, something is not possible in Chapter 7 bankruptcy. Making up for the missed mortgage payments is only possible in Chapter 13 bankruptcy.

Repay domestic support debts and nondischargeable tax in Chapter 13 bankruptcy

You will be able to use Chapter 13 privileges to pay those debts in full over 3-5 years.

Repay other debts over time in Chapter 13 bankruptcy

When you are having creditors coming at you for your property and salaries, it gets difficult to keep a shed over your head when paying off your debts. With the security of bankruptcy court, you will have a better opportunity of accomplishing both. The automatic stay prevents creditor actions when you pay off the debt over 3-5 years’ repayment plan.

Protect your codebtor on personal debt

If you have filed for Chapter 7 bankruptcy, but the codebtor will yet be on the hook, and your creditor is not going to stop going after them for the repayment. By contrast, if you’ve filed for Chapter 13, the lender will most likely leave the codebtor alone, as long as you keep up with the repayments.

Filing chapter 13 when you cannot meet chapter 7 requirements

Some bankruptcy filers can’t file Chapter 7 bankruptcy, because they failed the Means Test. Chapter 13 remains as their only last resort. This is the case if both of the following are true:

The monthly income of your recent six months before your bankruptcy filing date is more than the median income for a family of your size in your state.

Your disposable income, after deducting monthly payments for debts and certain expenses you’d have to pay off in chapter 13, exceeds some limits preset by the state law. These calculations happen to be referred to as ‘Means Test.’ They decide whether you hold the means to pay off a certain amount of your financial liabilities through a chapter 13 repayment plan. In case you do, you fail the test and are not eligible for chapter 7 bankruptcy filing.

Recovery Law Group – an experienced and most respected group of bankruptcy lawyers and services, can help you decide which chapter is right for you.

Call them on: +1 888-297-6203.