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Chapter 13 Bankruptcy Lawyer

In a bankruptcy proceeding, there are two different chapters a person can file under. A Chapter 13 is known as reorganization bankruptcy, and enables the person filing to restructure their debt, make payments over time, and not have to forfeit any assets. In most cases, Chapter 13 is the best option for people that have a steady income but has gotten behind on his or her bills. A competent Chapter 13 lawyer can advise on how to best go about filing under this chapter, of if a Chapter 7 may be the way to go.

If you have a sizable amount of equity value in your house, or other assets such as multiple cars that you don’t want to be auctioned off, Chapter 13 will provide that protection over Chapter 7. With Chapter 7 all assets which aren’t specifically exempt will be auctioned to cover your debt. With a Chapter 13 bankruptcy, that is not a concern. You get to hang onto your assets and the court will then set up a repayment plan for all debts. It is important that you have a Chapter 13 bankruptcy lawyer that is knowledgeable in bankruptcy laws who can guide you through the process and advise you on which chapter is best for your unique situation.

After you and your Chapter 13 bankruptcy lawyer have decided that filing Chapter 13 is what is best for you, the attorney files the bankruptcy petition. Once the petition is filed, an automatic stay is put into place which stops all collection activity. Keep in mind Chapter 13 bankruptcy is the quick fix. Average time allotted for a repayment plan is between three to five years. While in repayment, you will have to make the payments set up by the court, while staying current with all other monthly bills. The stipulation that you keep current with your regular expenses while keeping current on any debts you reaffirm, or agree to pay, will be mandated by the court for Chapter 13. If this is not possible, or if you fall behind, then the court might force a Chapter 7. However, the court will attempt to work with you, your lawyer, and any appointed trustee to make sure that not only are the payments stretched out over a lengthy period, but manageable to help you make this possible.

Having a Chapter 13 bankruptcy lawyer assist with your bankruptcy is not required, but it is your best interest to do so. The creditors that can be included vary from state to state. Also, limits on unsecured and secured debt are periodically adjusted, so it is important that someone walk you through the process. Bankruptcy can mean a clean slate and new start, but choose wisely. Family and friends that have already gone through bankruptcy would be able to give the best reference, or using a trusted source such as to find a good Chapter 13 bankruptcy lawyer. In any case, make sure you find one that you get along with and will do your case right.