A bankrupt person who is unable to repay any outstanding debts to creditors may seek bankruptcy as a final resort to get out of debt. When you are having financial difficulties, you become unable to meet your financial obligations. While filing for bankruptcy, chapter 13 lawyers in Victorville can assist you in pursuing debt settlement, reorganizing your finances, and improving your credit score.
You must know how to choose the most appropriate bankruptcy kind to solve your financial difficulties before declaring bankruptcy. The two most prevalent types of bankruptcy are Chapter 7 and Chapter 13.
A knowledgeable chapter 13 bankruptcy in Victorville lawyer can assist you in determining which option is best for you.
The following questions will be answered in this post to help you understand how Chapter 13bankruptcy in Victorville works:
What is Bankruptcy Chapter 13?
Chapter 13 bankruptcy, commonly known as “wage earners” bankruptcy, is a type of bankruptcy in the United States in which debtors reorganize their finances under the supervision and consent of the bankruptcy court. This chapter of bankruptcy demands that you have a steady income. This chapter focuses on staying current on loans and repaying debts while preserving your assets.
Debtors must file and carry out a plan to repay outstanding debts within three to five years as part of a Chapter 13 reorganization.
How can I know if I’m eligible for Chapter 13 bankruptcy?
You must meet the following requirements to be eligible for Chapter 13 bankruptcy and to know more details, you should consult with chapter 13 lawyers in Victorville.
A regular monthly income is required.
You must not have filed anything.
You must not have filed a bankruptcy petition (Chapter 7 or 13) in the previous 180 days that was dismissed for reasons such as failure to follow court directions.
You cannot have filed for Chapter 13 or Chapter 7 bankruptcy during the last two years or within the last four years.
You must keep up with your tax filings.
How Do I File for Bankruptcy Under Chapter 13?
Bankruptcy under Chapter 13
Before filing for Chapter 13 bankruptcy, you should speak with a reputable chapter 13 bankruptcy in Victorville to examine your financial circumstances and determine whether this chapter is the best option for you to start over and live a debt-free life.
You must demonstrate to a bankruptcy trustee that you are financially competent in debt rearrangement in this bankruptcy chapter. To repay your secured and unsecured debts, the court must approve your restructured payment plan. Within 3-5 years, you will be able to keep your assets while paying off your debts.
Take advantage of credit counseling sessions.
Before filing for bankruptcy, you must attend credit counseling sessions with a credit counseling service. Your counselor may assist you in developing a repayment plan during the session.
Complete the bankruptcy paperwork
You must fill out the form completely and accurately reflect your current financial situation. All assets, liabilities, monthly income, living costs, bank account information, credit card debt, loan debt, and property transactions must be declared.
A skilled lawyer of chapter 13 bankruptcy in Victorville can help you file for bankruptcy. Before you submit your lawsuit to the local court and pay the filing fees, double-check that all of the information on your paperwork is correct.