If you are going through tough times, filing for bankruptcy might be the best option to stop foreclosure, keep your car, your property, pay back taxes and repay debt. Though some in the New Jersey area may not fully understand what it means to file for bankruptcy, filing for Chapter 13 bankruptcy can be a positive move.
This action was created to help those who have found themselves overwhelmed by debt and on the verge of losing everything reduce their debt and pay things off sooner. There is normally a 3 to 5 year repayment plan that is worked out between the debtor and the collectors. How do you know if filing for Chapter 13 bankruptcy is right for you?
Chapter 13 bankruptcy is commonly considered a reorganization of contracts between yourself and the people who are in charge of your debts. This differs from Chapter 7 bankruptcy, which is often a total liquidation of assets. To be eligible to apply for Chapter 13, you must have a regular income and be willing to pay back at least what the collectors would have gotten had the debt not stayed in collections.
Filing for Chapter 13 bankruptcy allows a person to keep their assets and repay their debts over an extended period. Many people may prefer this over the alternative, Chapter 7 bankruptcy, but both serve their purposes. If you or someone you know is experiencing financial difficulties and looking for debt relief, speaking with an experienced attorney about Chapter 13 bankruptcy might be very beneficial.