According to the law chapter 13 bankruptcy allows the debtor to seek protection from creditors while also setting up a debt repayment plan as LawShelf explains in their video, “Chapter 13 Bankruptcy: An Overview.” Chapter 13 bankruptcy also protects the debtor’s assets from being liquidated. It is a common type of bankruptcy but often times, chapter 13 bankruptcy is available only to persons with a sufficient income that will enable them to cater to the repayment plan set by the court.
The most common thought people share when bankruptcy is mentioned is that a court orders the cessation of a person’s assets and leaves them with little to nothing. That is, however, a normal occurrence for a chapter 7 bankruptcy.
Chapter 13 bankruptcy offers a reprieve to those who are overwhelmed with debt and will require you to seek the services of chapter 13 bankruptcy attorneys.
Regarding chapter 13 bankruptcy, a person has the opportunity to avoid bankruptcy by rescheduling their payments to creditors. The entire process unifies the person’s debts into a unified repayment plan and also barrs creditors from contacting the per. Filing for a chapter 13 bankruptcy will require you to file with your state of residence information or where your business is located. You will also have to provide your financial statements and a list of all your debt obligations to creditors.
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