Many circumstances can lead to financial difficulties. Many of them are unexpected and without any fault on the part of the individual. In the current difficult economic climate of increasing inflation, it seems that almost everyone is struggling to keep their heads out of the water. Then add an unforeseen event, such as a loss of employment, a divorce or medical bills resulting from an illness or accident, which can be devastating for an individual or a family. Then you have people caught in a financial mess when their mortgage is adjusted and they can not keep track of their payments. Credit cards with their high interest rates seem to be endless and unpayable. Maybe the person then turns to payday loans to launch the can a little further, but in reality, it only delays the inevitable. All of these things can all contribute to financial disaster resulting in lawsuits, repossession, seizures of wages and foreclosures. The thing to remember is that doing nothing will not solve the problem but will make it worse. That's why the bankruptcy code was created. Bankruptcy bankruptcy offers people an overwhelming debt relief while allowing them to keep personal property such as their home.
Chapter 13, Bankruptcy in Reorganization, has been designed for people like these. Chapter 13 Bankruptcy is generally filed by people who are employed, who have a large debt and who want to be able to repay the debt over a long period, while being protected by law. Chapter 13 is really for people who have enough personal valuables to keep in their bankruptcy file. When a person files a bankruptcy under Chapter 7, it eliminates its unsecured debts but may lose personal property if these are not protected by exemption laws. Some assets are exempt, but if the person has many assets or assets, some of them may be non-exempt and sold in Chapter 7 – Bankruptcy to repay the creditors. That's why a Chapter 13 Bankruptcy may be a better fit for people who have non-exempt assets they want to keep. As long as the depositor has a regular and predictable income, he may be a candidate in Chapter 13. The depositor and his lawyer will submit a feasible repayment plan with a time limit of three to five years to the bankruptcy court. Secured debts are the first to be paid with unsecured debts getting all that remains after taking over the priority debts. At the end of the agreed period, if there remain unsecured debts, they will be eliminated upon the release of the bankruptcy. At any time during the repayment plan of three to five years, if the debtor's financial situation changes, such as a pay cut or a loss of employment, Chapter 13 may be readjusted or converted to Chapter 7. C that's why is a popular choice for many because the plan is very flexible and can be modified to meet the debtor's needs. Chapter 13 – Bankruptcy will not only give you a fresh start, but will also allow you to take control of your financial situation.