When people turn 18 and are just getting into college, they are finally considered adults and able to make their own financial decisions. Credit card companies start offering credit cards to them, and many teenagers haven’t had any formal counseling or education on credit and how to, or not to, use it. Naturally any teenager dreams of having their own card and being able to buy what they want to, but without being knowledgeable about the consequences of poorly managing credit it is likely that they are going to make bad decisions. But it isn’t just teenagers or first time card holders that get in to trouble with these forms of credit- many people don’t realize how dangerous unsecured credit is until it’s too late.
That’s when the collectors start calling, hounding you daily about how you are going to repay the debt. When you say you don’t have the money, they urge you to ask a family member or friend. Sometimes these collectors get downright rude and threaten you or yell at you when you inform them that you have no means with which to make a payment. When you choose not to answer, they call back, again and again, sometimes as often as a few times an hour. The phone rings and rings with the ominous sound of the impending collection call. Anyone who has ever been in this predicament knows how downright annoying and frustrating these constant calls can be. What these people should know, however, is that they can protect themselves from this harassment when they file for chapter 7 bankruptcy.
When one goes to file chapter 7 bankruptcy, they are basically admitting that they are in such a financial situation where they are unable to pay their existing debts. Naturally this insolvency isn’t guaranteed to just anyone- there is a ‘means test’ which anyone interested in filing much pass in order to be eligible to file chapter 7 bankruptcy. If one’s income is above the average income in their state based on family size, it is possible that the court can dismiss the case based on this fact. The other important thing to note is that only certain debts are discharged under the law. Of course credit card debts are able to be dismissed, but if a person owes back child support, past due taxes, student loans or criminal restitution fines, for example, these are not pardoned under bankruptcy laws.
Those planning to file chapter 7 bankruptcy may want to get in touch with legal counsel before they do so. Most, if not all, lawyers offer free consultations for the initial visit, so not having money isn’t going to get in between deciding to seek legal counsel or not. Many times, the free initial meeting gives one enough information to decide whether they should file chapter 7 bankruptcy or possibly file under chapter 13, the other type of bankruptcy available for the average individual debtor. If one wants relief from their growing consumer debt, then looking into the possibility to file chapter 7 bankruptcy is wise, and obtaining a free consultation from a lawyer who specializes in the subject is equally intelligent.
Mar 16, 2010
Mar 14, 2010
Failing Business? Consult With A Chapter 11 Bankruptcy Lawyer Before Filing
It is the dream of many to have their own business, whether this is a formal brick and mortar establishment or something run over the internet. Free help and guidance from the government, along with advances in technology and the increased ability to reach larger consumer bases has made this opportunity more available to the average individual. Naturally with an independent business, there comes a lot of responsibility and paperwork involved in running it and documenting all activities in order to be compliant with federal and state laws. Some people are inherently great with recordkeeping, some people aren’t.
Even more important to the success of any independent endeavor is the status of the economy. Why is this? If the economy is failing, as it is currently, more consumers hold on to their money, cutting discretionary spending to a minimum. If a business sells items or services that aren’t considered by most as essential to daily living, then sales drop. This drop in sales can be detrimental to any business, and can force the owner of the company to have to close its doors, or seek protection from their creditors by filing for protection under federal law. Any business owner that finds themselves in a predicament where this seems to be the best option should consult with a chapter 11 bankruptcy lawyer before they file insolvency.
With our ability to gain access almost any information we wish to research over the internet, we obviously have all of the laws, provisions, and rules pertaining to the laws surrounding bankruptcy at our disposal. We can also access articles about the subject, blogs about personal experiences with it and interpretations of the law written for the web. It is even possible to obtain all of the paperwork associated with filing a petition in court. Of course our ability to get all of this data leads us to wonder why consulting a chapter 11 bankruptcy lawyer is an important. After all, it seems like everything we need is at our fingertips, right?
The problem with going off of information acquired solely from the internet is that it may not necessarily be accurate, up to date or even completely understandable. It may not even be written by a professional in the field of law. As you would expect, anything found on the official government website will be both up to date and factual. However, as with most governmental documents and legal publications, this information is extremely hard to digest. As such, consulting a Chapter 11 bankruptcy lawyer is always a good idea for any company that seems to be going under. Beyond the fact that the initial consultation is a free meeting, a chapter 11 bankruptcy lawyer will be able to decipher the law as it pertains to one’s personal situation and advise them on whether filing a petition in court is even the right thing to do.
Even more important to the success of any independent endeavor is the status of the economy. Why is this? If the economy is failing, as it is currently, more consumers hold on to their money, cutting discretionary spending to a minimum. If a business sells items or services that aren’t considered by most as essential to daily living, then sales drop. This drop in sales can be detrimental to any business, and can force the owner of the company to have to close its doors, or seek protection from their creditors by filing for protection under federal law. Any business owner that finds themselves in a predicament where this seems to be the best option should consult with a chapter 11 bankruptcy lawyer before they file insolvency.
With our ability to gain access almost any information we wish to research over the internet, we obviously have all of the laws, provisions, and rules pertaining to the laws surrounding bankruptcy at our disposal. We can also access articles about the subject, blogs about personal experiences with it and interpretations of the law written for the web. It is even possible to obtain all of the paperwork associated with filing a petition in court. Of course our ability to get all of this data leads us to wonder why consulting a chapter 11 bankruptcy lawyer is an important. After all, it seems like everything we need is at our fingertips, right?
The problem with going off of information acquired solely from the internet is that it may not necessarily be accurate, up to date or even completely understandable. It may not even be written by a professional in the field of law. As you would expect, anything found on the official government website will be both up to date and factual. However, as with most governmental documents and legal publications, this information is extremely hard to digest. As such, consulting a Chapter 11 bankruptcy lawyer is always a good idea for any company that seems to be going under. Beyond the fact that the initial consultation is a free meeting, a chapter 11 bankruptcy lawyer will be able to decipher the law as it pertains to one’s personal situation and advise them on whether filing a petition in court is even the right thing to do.
Mar 13, 2010
If Your Business Is Going Under, Consult A Chapter 11 Bankruptcy Attorney
It is a dream of many people to own their own business. The idea of working for themselves, setting their own hours and selling products or services in which they are personally interested sounds highly desirable. What most individuals don’t realize, however, is the amount of responsibility that comes with running their own business. From product sourcing to marketing to sales, accounting, and taxes, there are many responsibilities involved in running a company which take time, and proper knowledge, to perform. Small mistakes can lead to major problems for the company’s viability.
Those who aren’t prepared to take on or outsource the responsibilities find out fast that they have bitten off more than they can chew. People who didn’t enter with a good and solid business plan quickly find themselves in trouble- and many times, this trouble ends up being financial. When a business owner finds himself in dire straits, they should consult a chapter 11 bankruptcy attorney and find out what their rights under federal law are before just giving up on the business.
What exactly is chapter 11? In general terms, this is a form of financial reorganization which typically allows companies to continue to function while they follow debt repayment plans generated by the court and the company’s creditors. The theory here is that otherwise viable businesses are allowed to continue to operate because they will generate revenue, protect jobs, and be able to pay off creditors over time. Selling off the assets of the company to pay debts is a possibility, but it may not satisfy all of the indebtedness, and could force a business, small or large, to close its doors. In many cases, a reorganization which allows for a repayment plan that everyone agrees to makes more sense than closure of the business.
Chapter 11 can also, at times, be used by individual consumers. This would be in situations where the individual’s income was higher than the limits that are set in other types of insolvency, like 7 and 13. For those without businesses, this isn’t typically recommended as it is far more complex and expensive to pursue than other types. In addition, as you can find out from a chapter 11 bankruptcy attorney in a free consultation, the percentage of successful cases isn’t very high.
In small business cases, the assets of the company as well as the assets of the owner are at risk. These assets can be used to pay creditors or the owner may be forced to file for personal insolvency protection. Because of this, consulting a chapter 11 bankruptcy attorney is recommended. Though one can file for insolvency on their own using the forms and information found via the internet, the laws surrounding this legal protection are very complex. A Chapter 11 bankruptcy attorney has an in depth understanding of the laws and can explain how filing will affect the business owner as well as the company. After all, a chapter 11 bankruptcy attorney is paid to work in the best interest of their client, and can protect their client as much as possible.
Those who aren’t prepared to take on or outsource the responsibilities find out fast that they have bitten off more than they can chew. People who didn’t enter with a good and solid business plan quickly find themselves in trouble- and many times, this trouble ends up being financial. When a business owner finds himself in dire straits, they should consult a chapter 11 bankruptcy attorney and find out what their rights under federal law are before just giving up on the business.
What exactly is chapter 11? In general terms, this is a form of financial reorganization which typically allows companies to continue to function while they follow debt repayment plans generated by the court and the company’s creditors. The theory here is that otherwise viable businesses are allowed to continue to operate because they will generate revenue, protect jobs, and be able to pay off creditors over time. Selling off the assets of the company to pay debts is a possibility, but it may not satisfy all of the indebtedness, and could force a business, small or large, to close its doors. In many cases, a reorganization which allows for a repayment plan that everyone agrees to makes more sense than closure of the business.
Chapter 11 can also, at times, be used by individual consumers. This would be in situations where the individual’s income was higher than the limits that are set in other types of insolvency, like 7 and 13. For those without businesses, this isn’t typically recommended as it is far more complex and expensive to pursue than other types. In addition, as you can find out from a chapter 11 bankruptcy attorney in a free consultation, the percentage of successful cases isn’t very high.
In small business cases, the assets of the company as well as the assets of the owner are at risk. These assets can be used to pay creditors or the owner may be forced to file for personal insolvency protection. Because of this, consulting a chapter 11 bankruptcy attorney is recommended. Though one can file for insolvency on their own using the forms and information found via the internet, the laws surrounding this legal protection are very complex. A Chapter 11 bankruptcy attorney has an in depth understanding of the laws and can explain how filing will affect the business owner as well as the company. After all, a chapter 11 bankruptcy attorney is paid to work in the best interest of their client, and can protect their client as much as possible.
Mar 12, 2010
Before You Pay Bankruptcy Attorney Fees You Can Get A Free Consultation
When people are faced with times of great financial difficulty where they are struggling to pay their credit obligations, they typically make actions to try to reorganize their spending in order to ease the stress and strain. Most individuals will analyze what they spend their discretionary income on, and cut out certain items which aren’t necessary. For example, those who spend money each day buying coffee from a local convenience store or fast food joint will either make their own coffee at home or stop drinking it each morning altogether.
Others will find out ways to skimp on their grocery bills, eliminating pricey cuts of meat or snacks from their shopping list in order to place more money each paycheck into their pockets. Some people are more spendthrift than others, and they find out ways to get free trials on items they use on a regular bases, or cut coupons from local newspapers or magazines. Despite all of the efforts, sometimes all one can do isn’t enough to save them from their monetary distress and slowly start falling behind on their bills.
In times like these, more drastic measures are needed in order to fix the financial troubles. Sometimes attending a credit counseling session can educate one on more ways to save, and identify unseen areas where one can cut out spending. Other times, seeking help from a professional debt management group becomes necessary, so that negotiation can happen with creditors in order to reduce debt or interest rates so that balances can be paid off. In the worst cases, filing for insolvency becomes the most logical option in order to obtain relief from the growing debt.
If one finds themselves in this predicament, it is important to note that they can access a free consultation with a lawyer before they ever have to pay any bankruptcy attorney fees. Many people avoid seeking legal counsel because they are afraid of the cost of these bankruptcy attorney fees, They can’t see how coming up with money for a lawyer is even possible, much less necessary, considering the fact that they are eligible to file a petition in court on their own using the information they can find over the internet.
The great thing about the free consultations that one can receive is that they can educate an individual on the legal options they have, before bankruptcy attorney fees even are paid. In some cases, many people determine that filing for insolvency is not only unnecessary, but also unwise, as it will affect parts of their personal property they are unwilling to lose. In other cases, obtaining a free consultation will help one decide that filing for insolvency is not only the best thing in their personal situation, but will actually help them more than they realized. At this point, it is wise to pay the bankruptcy attorney fees and have legal counsel represent them. A professional in the field of bankruptcy will work in their best interest and protect them from any issues with filing for protection.
Others will find out ways to skimp on their grocery bills, eliminating pricey cuts of meat or snacks from their shopping list in order to place more money each paycheck into their pockets. Some people are more spendthrift than others, and they find out ways to get free trials on items they use on a regular bases, or cut coupons from local newspapers or magazines. Despite all of the efforts, sometimes all one can do isn’t enough to save them from their monetary distress and slowly start falling behind on their bills.
In times like these, more drastic measures are needed in order to fix the financial troubles. Sometimes attending a credit counseling session can educate one on more ways to save, and identify unseen areas where one can cut out spending. Other times, seeking help from a professional debt management group becomes necessary, so that negotiation can happen with creditors in order to reduce debt or interest rates so that balances can be paid off. In the worst cases, filing for insolvency becomes the most logical option in order to obtain relief from the growing debt.
If one finds themselves in this predicament, it is important to note that they can access a free consultation with a lawyer before they ever have to pay any bankruptcy attorney fees. Many people avoid seeking legal counsel because they are afraid of the cost of these bankruptcy attorney fees, They can’t see how coming up with money for a lawyer is even possible, much less necessary, considering the fact that they are eligible to file a petition in court on their own using the information they can find over the internet.
The great thing about the free consultations that one can receive is that they can educate an individual on the legal options they have, before bankruptcy attorney fees even are paid. In some cases, many people determine that filing for insolvency is not only unnecessary, but also unwise, as it will affect parts of their personal property they are unwilling to lose. In other cases, obtaining a free consultation will help one decide that filing for insolvency is not only the best thing in their personal situation, but will actually help them more than they realized. At this point, it is wise to pay the bankruptcy attorney fees and have legal counsel represent them. A professional in the field of bankruptcy will work in their best interest and protect them from any issues with filing for protection.
Mar 10, 2010
Why Bankruptcy Credit Counseling From A Legal Professional Is Essential
The condition of the economy has many people facing tough decisions regarding their financial affairs. With the high rates of unemployment and bleak outlook for the creation of new jobs, many unemployed individuals are finding themselves uncertain of how they are going to pay off their obligations. Even some of those who have remained gainfully employed have been affected by the economic downturn; whether their salary was cut, hours were slashed or the bonuses they once relied on were discontinued, paying their financial obligations has become harder.
Now, more than ever, people are turning to the option of filing bankruptcy in order to get some relief. While there has always been a stigma placed upon it, as if filing is taking the easy way out, there is no shame in one admitting that they are in over their head. Sometimes people get into agreements and monetary commitments based on their current income, then lose their job or experience a major setback which changes the outlook of their financial affairs.
Anyone thinking about filing should consult a lawyer who specializes in this practice. Bankruptcy consultations are free, and give an individual all of the information they need in order to determine what protections they have. Although one can search the internet and even file online on their own without the help of an attorney, obtaining a free consultation will help make sense out of the complex laws and stipulations which surround filing. Only a lawyer who specializes in this field can give an analysis of which chapter will fit best for each personal situation. In addition, a legal professional can even advise against filing at all in cases where it would affect property or possessions one wants to protect.
This is where bankruptcy credit counseling comes in as an important step required before a case can be filed in court, and not necessarily because an individual abused their credit. First of all, there are times that as a result of bankruptcy credit counseling, people realize that while filing was a viable option, there were other things that they could do instead to improve their financial standing. For those who aren’t even behind on payments, this counseling can help point out issues that may arise in the future if their budget is overstretched. In cases where a person has in fact abused credit, bankruptcy credit counseling teaches them how to make a modest budget and make smart monetary decisions so that they avoid falling behind in the future.
All in all, anyone who feels that they are struggling to repay their obligations or actually are behind should get a free bankruptcy consultation with a lawyer. Not only will it cost them nothing, but the initial bankruptcy credit counseling from the legal professional will help one determine whether or not they should file, and which chapter would be most beneficial. Once a determination has been made to file, formal bankruptcy credit counseling will give an individual knowledge and tools to use in the future for sound monetary decisions and investments.
Now, more than ever, people are turning to the option of filing bankruptcy in order to get some relief. While there has always been a stigma placed upon it, as if filing is taking the easy way out, there is no shame in one admitting that they are in over their head. Sometimes people get into agreements and monetary commitments based on their current income, then lose their job or experience a major setback which changes the outlook of their financial affairs.
Anyone thinking about filing should consult a lawyer who specializes in this practice. Bankruptcy consultations are free, and give an individual all of the information they need in order to determine what protections they have. Although one can search the internet and even file online on their own without the help of an attorney, obtaining a free consultation will help make sense out of the complex laws and stipulations which surround filing. Only a lawyer who specializes in this field can give an analysis of which chapter will fit best for each personal situation. In addition, a legal professional can even advise against filing at all in cases where it would affect property or possessions one wants to protect.
This is where bankruptcy credit counseling comes in as an important step required before a case can be filed in court, and not necessarily because an individual abused their credit. First of all, there are times that as a result of bankruptcy credit counseling, people realize that while filing was a viable option, there were other things that they could do instead to improve their financial standing. For those who aren’t even behind on payments, this counseling can help point out issues that may arise in the future if their budget is overstretched. In cases where a person has in fact abused credit, bankruptcy credit counseling teaches them how to make a modest budget and make smart monetary decisions so that they avoid falling behind in the future.
All in all, anyone who feels that they are struggling to repay their obligations or actually are behind should get a free bankruptcy consultation with a lawyer. Not only will it cost them nothing, but the initial bankruptcy credit counseling from the legal professional will help one determine whether or not they should file, and which chapter would be most beneficial. Once a determination has been made to file, formal bankruptcy credit counseling will give an individual knowledge and tools to use in the future for sound monetary decisions and investments.
Mar 9, 2010
Consult A Lawyer To Get An Understanding Of Chapter 13 Bankruptcy Rules
With the economy in the condition it is in, many people are finding that getting by day to day is becoming harder. Most Americans lived paycheck to paycheck already, and a good number of families had both adults working to make ends meet. With unemployment rates soaring and cuts in hours and pay, the average household is bringing in much less than in years past- with no reduction in their overall debt. As such, a growing number of individuals are looking towards bankruptcy as their hope for relief.
Unfortunately Chapter 7 and Chapter 13 bankruptcy rules are very confusing to understand. There are specific protections, disclosures, addendums and provisions in the laws that surround bankruptcies. Same as with income taxes, these are written in complex legal terms hard for the average individual to understand. Everything one needs to know in order to file can be found on the internet, but without following the instructions and specifications as written a person can possibly incur fines or even imprisonment as a result. This is where having a lawyer who specializes in this field is not only important, but advised.
While both chapters 7 and 13 apply to individual debtors as opposed to businesses or corporations, Chapter 7 and Chapter 13 bankruptcy rules are different- another reason why having a legal consultation is important. Though a person’s initial impression of the differences between the two lead them to believe that one is better than another, the laws themselves don’t detail every situation- meaning that there is a lot of interpretation involved. Without a good understanding of how each type of bankruptcy will affect their financial obligations, one may choose incorrectly- where a lawyer could have helped them make a decision that would have been in their best interest.
For example, after reading the Chapter 13 bankruptcy rules, one will see that they must file with the court a plan to repay their creditors all or part of the money that is owed using future earnings. This can falsely lead them to believe that they must address each creditor in the plan- and take on more repayment than necessary under the protection of the law. After consulting a lawyer, however, the person would have found out that they can eliminate any unsecured debts that they do not wish to keep, such as credit cards. They can even negotiate on certain secured debts, like car loans, to pay back what the vehicle is currently valued as opposed to what is left on the loan.
Though some may wish to avoid paying a lawyer since they can file alone, getting a free legal consultation at the very minimum is wise. Chapter 7 and Chapter 13 bankruptcy rules are complex and there is a lot of time and effort required in order to fill out all of the required paperwork for the court. In a consultation, a legal professional can make sense out of the Chapter 7 and Chapter 13 bankruptcy rules as well as aid in the completion of the required paperwork. Beyond arming them with this understanding and knowledge, a lawyer can advise an individual on what to say or not to say, and which type of bankruptcy will allow them to keep a greater amount of what they worked hard to obtain.
Unfortunately Chapter 7 and Chapter 13 bankruptcy rules are very confusing to understand. There are specific protections, disclosures, addendums and provisions in the laws that surround bankruptcies. Same as with income taxes, these are written in complex legal terms hard for the average individual to understand. Everything one needs to know in order to file can be found on the internet, but without following the instructions and specifications as written a person can possibly incur fines or even imprisonment as a result. This is where having a lawyer who specializes in this field is not only important, but advised.
While both chapters 7 and 13 apply to individual debtors as opposed to businesses or corporations, Chapter 7 and Chapter 13 bankruptcy rules are different- another reason why having a legal consultation is important. Though a person’s initial impression of the differences between the two lead them to believe that one is better than another, the laws themselves don’t detail every situation- meaning that there is a lot of interpretation involved. Without a good understanding of how each type of bankruptcy will affect their financial obligations, one may choose incorrectly- where a lawyer could have helped them make a decision that would have been in their best interest.
For example, after reading the Chapter 13 bankruptcy rules, one will see that they must file with the court a plan to repay their creditors all or part of the money that is owed using future earnings. This can falsely lead them to believe that they must address each creditor in the plan- and take on more repayment than necessary under the protection of the law. After consulting a lawyer, however, the person would have found out that they can eliminate any unsecured debts that they do not wish to keep, such as credit cards. They can even negotiate on certain secured debts, like car loans, to pay back what the vehicle is currently valued as opposed to what is left on the loan.
Though some may wish to avoid paying a lawyer since they can file alone, getting a free legal consultation at the very minimum is wise. Chapter 7 and Chapter 13 bankruptcy rules are complex and there is a lot of time and effort required in order to fill out all of the required paperwork for the court. In a consultation, a legal professional can make sense out of the Chapter 7 and Chapter 13 bankruptcy rules as well as aid in the completion of the required paperwork. Beyond arming them with this understanding and knowledge, a lawyer can advise an individual on what to say or not to say, and which type of bankruptcy will allow them to keep a greater amount of what they worked hard to obtain.
Mar 8, 2010
Those In Financial Distress Should Learn More About Filing For Bankruptcy
When an individual faces a dire financial situation due to unforeseen medical expenses, excessive credit card debt, loss of employment, and divorce, it is inevitable that they are going to have to make some major changes in order to afford their every day life. Needless to say many of these events create not only financial difficulty but also a tremendous amount of disruption and distress in and of themselves. This makes it especially important that individuals consider all available options and alternatives to filing to make sure whatever action they settle upon is in their long term interest- and filing for bankruptcy is one option they should investigate.
Chapter 7 and Chapter 13 are the two main chapters under which individuals can place their petition under when filing for bankruptcy. Chapter 7 is a liquidation of assets. This type is often referred to as "regular," "straight" or "liquidation" bankruptcy as it discharges all of your unsecured debts without a repayment plan. Under Chapter 7, you must give up any nonexempt property that you own, meaning those select property items which aren't covered by protection under the law. The trustee assigned to your petition may sell this property and divide the proceeds among your creditors. Property that isn't discharged includes secured loans like cars, homes, and some credit card purchases. You can choose to forfeit these assets that provide security for the loan, in order to discharge the debt.
Chapter 13 is reorganization where the debtor creates a three to five year payment plan. When a person is filing for bankruptcy under this type, it involves a reasonable, court-approved repayment plan designed to pay back all or part of the debt over a five-year period. This plan will be based on income level, and covers both secured and unsecured debt. Individuals typically have to pay all of their disposable monthly income to the trustee, who then disperses the money to their creditors. A certain amount will be allowed for entertainment and emergency purchases. The payment plan must pass two tests; the best interest test and the best efforts test. Under law, Chapter 13 cannot last longer than five years. As long as one makes their payments under the payment plan, creditors can't contact them. This plan is an excellent solution as long as one is capable of creating and following a budget.
If one is interested in filing for bankruptcy, then they should learn more about the federal law surrounding the subject. Deciding to file is an important decision and the law and its application to one's particular situation can be very complicated. The forms and requirements for filing can be very complicated, and though it can be done without legal support, it is generally recommended that one consult with an attorney with experience in this field. One can obtain a free consultation from a lawyer in order to discuss their personal situation and determine whether this is the best option available for them.
Chapter 7 and Chapter 13 are the two main chapters under which individuals can place their petition under when filing for bankruptcy. Chapter 7 is a liquidation of assets. This type is often referred to as "regular," "straight" or "liquidation" bankruptcy as it discharges all of your unsecured debts without a repayment plan. Under Chapter 7, you must give up any nonexempt property that you own, meaning those select property items which aren't covered by protection under the law. The trustee assigned to your petition may sell this property and divide the proceeds among your creditors. Property that isn't discharged includes secured loans like cars, homes, and some credit card purchases. You can choose to forfeit these assets that provide security for the loan, in order to discharge the debt.
Chapter 13 is reorganization where the debtor creates a three to five year payment plan. When a person is filing for bankruptcy under this type, it involves a reasonable, court-approved repayment plan designed to pay back all or part of the debt over a five-year period. This plan will be based on income level, and covers both secured and unsecured debt. Individuals typically have to pay all of their disposable monthly income to the trustee, who then disperses the money to their creditors. A certain amount will be allowed for entertainment and emergency purchases. The payment plan must pass two tests; the best interest test and the best efforts test. Under law, Chapter 13 cannot last longer than five years. As long as one makes their payments under the payment plan, creditors can't contact them. This plan is an excellent solution as long as one is capable of creating and following a budget.
If one is interested in filing for bankruptcy, then they should learn more about the federal law surrounding the subject. Deciding to file is an important decision and the law and its application to one's particular situation can be very complicated. The forms and requirements for filing can be very complicated, and though it can be done without legal support, it is generally recommended that one consult with an attorney with experience in this field. One can obtain a free consultation from a lawyer in order to discuss their personal situation and determine whether this is the best option available for them.
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