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.