If you are in need of debt relief, you may be thinking about bankruptcy. It is important to understand the fact that there are multiple different types of bankruptcies. The ideal choice will depend upon your circumstances, so you should have some basic knowledge regarding your options. A Chapter 13 bankruptcy is one possibility, and when you absorb these three facts, you will come away with a rudimentary understanding.
1.) An automatic stay is granted.
Many people consider bankruptcy because they are being inundated with collection letters and threatening calls. When you file for a Chapter 13 bankruptcy, you get immediate relief, because an automatic stay will go into effect. This prohibits creditors from trying to collect on the unpaid debts, so you have some time to regroup as you prepare yourself for life after bankruptcy.
2.) You can keep your property.
You may assume that you have to surrender your property when you file for any type of bankruptcy. In fact, this is not the case with a Chapter 13. This is a reorganization bankruptcy rather than a liquidation. If the bankruptcy goes through successfully, you will be able to maintain ownership of your property.
3.) Your debts are paid back over time.
When you file for Chapter 13 bankruptcy, you submit a repayment plan to the court. After the basic necessities of life are met, the remaining disposable income must go toward paying back your debts. The repayment plan lasts for 3 to 5 years. Under bankruptcy laws, certain types of debts are priority debts, and they would be paid first. Nonpriority debts, like credit card bills, would be at the end of the list. Depending on the extent of your disposable income, some or all of this non-priority debt may be discharged.
Schedule a Free Case Evaluation
Now that you know a little about Chapter 13, you may want to sit down and discuss this option and other possible courses of action with a licensed bankruptcy attorney. If you live anywhere in the state of Oregon, we probably have an office near you, as we have locations in Eugene, Portland, Grants Pass, Medford, Coos Bay, and a handful of other cities. We also have an office in Vancouver, Washington. To schedule a free, no obligation case evaluation give us a call at 1-800-682-9568.