Being stressed out about debt is no fun and coming to the decision that filing bankruptcy is your only way out of your financial trouble can many times relieve the pressure. After making the choice to file bankruptcy, you will also need to decide whether to file Chapter 7 or Chapter 13. If you decide to file bankruptcy under Chapter 13 you will be required to make monthly payments to the bankruptcy trustee who will then distribute the money based on the payment plan that was approved by the bankruptcy court. The reason most people use Chapter 13 is to stop a foreclosure and save their house or if they have many assets they might lose because they would end up being nonexempt in a Chapter 7 bankruptcy. It all sounds doable in the beginning when you agree to that chapter 13 payment plan. Sometimes things change and you struggle making the chapter 13 payments. Missing payments is not an option, unless you don't mind having the bankruptcy dismissed. If your income is changing and your struggling to keep up the only other option is to convert your bankruptcy to a Chapter 7.
Bankruptcy Attorney Denver, Bankruptcy Information, Bankruptcy Attorney Atlanta,
As long as you qualify, you can convert your bankruptcy to a Chapter 7 at any time under 11 U.S.C. 1307. When converting your bankruptcy to Chapter 7 there is a chance that you might lose some of the assets you are trying to protect in the Chapter 13 filing. If you have any assets that can be protected by a bankruptcy exemption law you might have to surrender them to the bankruptcy trustee for sale. Many people in Chapter 13 are trying to protect their house, when converting to a Chapter 7, unless you can remain current on your house payments the lender will file a motion for relief of stay with the bankruptcy court to allow them to foreclose on the property. This is also true with a vehicle loan. Since the discharge of debt is the ultimate goal of a bankruptcy filing, before a debtor converts to a Chapter 7 they should weigh the positives against the negatives to see if it's better to try and renegotiate the Chapter 13 bankruptcy payment plan. A bankruptcy lawyer would be an invaluable asset in helping make this decision on what to do.
Depending on the amount of unsecured debts the individual has, Converting to Chapter 7 bankruptcy does have a few positives. Any bills that are incurred during the Chapter 13 would be above and beyond the Chapter 13 plan, but after converting to a Chapter 7 bankruptcy any bills that are incurred almost up to the discharge date can be added and included, wiping them out. This would come in handy if the person filing for bankruptcy got sick and had a large medical bill. The individual could add this to the Chapter 7 bankruptcy schedules and discharge it at the end of the bankruptcy filing.
If you think that your Chapter 13 bankruptcy is going south, converting your case to a Chapter 7 might be your best and only option to save it. Before doing anything, get in contact with your bankruptcy lawyer and discuss your options. Filing for bankruptcy is a powerful tool if used properly and it can be a waste of time for the debtor if not used to the full extent of the law.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney Orlando
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment