Deciding whether or not to file for Chapter 13 bankruptcy is a huge decision and can put you through a great deal of stress. Fear of losing your home, car and other possessions will be on your mind. The paperwork and organizing the required legal documents can be overwhelming. Our Philadelphia Chapter 13 bankruptcy lawyer William D. Schroeder, Jr.can guide you through this process and help you decide if Chapter 13 bankruptcy is right for you.
Chapter 7 and Chapter 13 Differences
When filing for bankruptcy, there are two main types you can choose from: Chapter 7 and Chapter 13. Chapter 7 bankruptcy results in your debts being completely cleared and absolves your debt to creditors at the price of liquidating all of your non-exempt possessions. You can keep your home and your belongings and much more in a Chapter 7; the key is the proper use of your exemptions. Alternatively, Chapter 13 bankruptcy offers the opportunity to pay your past due mortgage amount and taxes in exchange for a monthly payment plan that is based on your disposable income. Payments are made to your trustee, who will then pay your creditors. You receive protection from your creditors. Other benefits of Chapter 13 bankruptcy include the following:
- You can keep your possessions
- Debt payments can be lowered
- Remaining debt can be wiped out with the right planning
What Do I Need?
A good lawyer.
To file for Chapter 13 bankruptcy, you must have a regular source of income to ensure that you can pay back your creditors. Income can come from many sources in addition to wages. You must earn enough that you can pay back the debt within 3 to 5 years. A lawyer can help you with this.
Consequences
Although there are many benefits to declaring bankruptcy, it will stay on your credit report for 10 years.Although that is true, believe it or not, many people can buy a home and get a good mortgage just two years after filing. Filing a Chapter 7 or 13 is a decision that should only be made with the guidance of a professional and in a situation where the benefits outweigh the costs.
What We Offer
Our attorney can offer you years of experience in the field to help you make the best decision for your future. Filing for Chapter 13 bankruptcy commits you to a 3-5 year plan; this can affect your future both positively and negatively, so you will definitely want the advice of a professional before you file and throughout the process.
Filing for bankruptcy should not be taken lightly, but if you are at all considering it, Philadelphia Chapter 13 bankruptcy lawyer William D. Schroeder, Jr.can help you make the right decision. Facing the burden of high debts and creditors can be a stressful experience and it is not one that you want to manage alone. For more information or further questions, give us a call at 215-822-2728.