Chapter 13 Bankruptcy - Requirements and Rules

Chapter 13 Bankruptcy - Requirements and Rules """The days when filing for bankruptcy was generally regarded a do-it-yourself project are over. Most people today prefer to employ a professional for this task. Bankruptcy attorneys in Tampa assist individuals in eliminating their debt by selecting the appropriate form of bankruptcy. In most instances, attorneys must choose between chapter 7 and chapter 13 bankruptcies, the two most prevalent types of insolvency. These two categories of bankruptcy were created for distinct purposes. The chapter 7 bankruptcy governs liquidation, whereas the chapter 13 bankruptcy governs reorganization. In simpler terms, chapter 13 allows a debtor to retain his property and repay his debt over the course of three to five years, whereas chapter 7 requires the debtor to liquidate his assets to pay his creditors. Both of these chapters have advantages and disadvantages, and a competent bankruptcy attorney must be aware of them in order to make an informed decision.

This article will focus on chapter 13 bankruptcy, which is preferred by the majority of individuals because it results in reorganization rather than liquidation.

Chapter 13 bankruptcy is not for everyone, even though most people would like to retain their property and repay their debts gradually. Prior to filing for chapter 13 bankruptcy, certain requirements must be fulfilled. One must demonstrate that his or her income is sufficient to operate the business and meet all financial obligations. If you are considering filing for bankruptcy, you should consult with a bankruptcy attorney. He has the authority to determine whether chapter 13 applies to your case. Laws prohibit a person from filing for this type of bankruptcy if his secured debts (debts that give creditors the right to sell the debtor's property in the event of nonpayment) exceed $1,010,650 and his unsecured debts (debts such as medical bills) exceed $336,900.

Before filing for bankruptcy, an individual must attend a credit counseling session organized by a United States Trustee-approved agency. In many instances, such agencies charge a fee for their services, but if a client is in a dire financial situation, the fee may be reduced or waived entirely. A person must also pay $274 in filing fees (this is the current filing fee amount, but it fluctuates frequently). To receive more detailed instructions, you must consult with an experienced Tampa bankruptcy attorney.

Choosing the appropriate chapter of bankruptcy law is of the utmost importance if you wish to eliminate debt through bankruptcy. A bankruptcy lawyer can help you make an educated decision. There are a number of ways to discover an inexpensive attorney if you lack the funds to hire an expensive one. Most people prefer approaching multiple law firms simultaneously and comparing their prices to determine which one provides the highest quality services at the lowest feasible cost.""

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