Everywhere you turn these days, you hear about someone declaring bankruptcy. Most people think of chapter 7 or liquidation when they hear the word bankruptcy. You may want to check out Loveland Chapter 13 Bankruptcy Attorney for more. When it comes to personal bankruptcy, Chapter 7 is arguably the most commonly filed. The discharge without a repayment schedule is the reason why everyone resorts to Chapter 7 for debt relief. The automatic stay is the second most important advantage of Chapter 7 bankruptcy. When a person files for bankruptcy, the automatic stay is activated, which prevents creditors from contacting them. This implies they can no longer phone or harass debtors in an attempt to collect money. When you consider how relieved a debtor feels when they are no longer being insulted by their creditors, this is a strong statement.
Chapter 13 is another chapter of bankruptcy that most people avoid. Most individuals are unaware that Chapter 13 bankruptcy has just as many, if not more, advantages than Chapter 7. However, just like in a Chapter 7 bankruptcy, Chapter 13 bankruptcy benefits from the automatic stay. The area of property protection is where a Chapter 13 bankruptcy really excels. Because of the real estate market’s downward spiral, you can’t turn on the news these days without hearing about foreclosure. This is one instance where a person can use a bankruptcy filing to preserve their assets. One thing to keep in mind is that Chapter 13 filers must be working or have a steady source of income.
After examining the client’s financial position, the bankruptcy attorney will usually send them to this part of the filing process. When filing a Chapter 13 bankruptcy, the individual must devise a reasonable three- to five-year repayment plan. Given this, the debtor will need to maintain a steady source of income in order to stay afloat. If the debtor is unable to continue making payments for any reason, they should contact their bankruptcy counsel to either reduce the payment amount or, if the problem appears to be permanent, convert the bankruptcy to a Chapter 7. Another hidden benefit of Chapter 13 is its flexibility.
A Chapter 13 bankruptcy has numerous advantages. Your bankruptcy attorney may use the word “cramdown” when discussing your choices with you. Most creditors do not want property returned due to the state of the economy.
Holland Law Office
1635 Foxtrail Drive, Loveland, Colorado 80538
Phone no: (970) 232-3097