What You Must Know About Chapter 13 Bankruptcy
When you come to the realization that something needs to give in terms of your money, you start looking into what to do. When it comes to bankruptcy, there are both advantages and disadvantages, but which one would assist you the most? Read on to learn about the most significant distinctions between these two products and how filing bankruptcy can help!
DoNotPay may assist you in filing for bankruptcy and in making important life decisions. DoNotPay's bankruptcy filing technique is the simplest ever devised. The DoNotPay team will take you through every step, saving you time and preventing you from taking the incorrect path.
What is Bankruptcy?
|Type Of Bankruptcy:||Details:|
|Chapter 7||Chapter 7 liquidates any non-qualifying assets in order to repay secured debt and discharge unsecured debt.|
|Chapter 13||Chapter 13 bankruptcy is more like a court-ordered payment plan. In order to prevent income garnishments and harassing phone calls in the future, both of these protections are available to you. Wage garnishments may be imposed by the court, but they will be limited to the amount of money you make.|
Consider bankruptcy if you find yourself regularly getting garnished from your salary and receiving phone calls from creditors at all hours of the day and night. Chapter 7 and Chapter 13 are the most popular kinds of bankruptcy.
What is Chapter 13 Bankruptcy?
The form of bankruptcy you choose will depend on your willingness to part with your assets, so think carefully before deciding on the type of bankruptcy. If you don't want your assets liquidated, Chapter 13 can make provisions to keep it. The asset must be paid for in full via the payment plan before you may retain it.
Paying off your secured debt and keeping the assets you're paying with are two very important advantages of this strategy over a traditional unsecured loan repayment. At the conclusion of the repayment term, unsecured debt such as credit cards, payday loans, and personal loans might be dismissed. Up to five years of the seven years that the bankruptcy will remain on your credit report will be spent repaying the obligations under Chapter 13.
What Bankruptcy Can’t Do
Bankruptcy can provide a shield for you to hide behind while you get your finances back in order. Although it does stop further collection from creditors individually, it does not completely delete it from the record. However, it can not stop the child support, alimony, and other court-appointed and government deductions from your funds. It's not a get out of debt-free card!
How Long Does it Take to File for Bankruptcy?
There will be a lot of time spent collecting information and waiting for hearings and court permission during the five months it takes to certify bankruptcy. Finally, the courts have decided how to proceed with either liquidation of your assets or a repayment plan. Every one of your creditors will be contacted and given the chance to file a claim against you prior to the liquidation taking place. Recognize that bankruptcy will remain on your credit record for seven to ten years!
How to File Bankruptcy on Your Own
In most cases, a person's eligibility for, kind of, and timing of bankruptcy are determined in consultation with bankruptcy lawyers. Your lawyer will put together everything from the 609 letters to the debt verification letters once you pay the retainer fee and any filing expenses. Paying the Trustee is essential to moving forward with bankruptcy. Before you can be verified, you must also pass a series of financial literacy tests.
File Bankruptcy with the Help of DoNotPay
A bankruptcy filing should not need a long period of time away from the job or the loss of money. DoNotPay may be able to assist you file for bankruptcy faster than a legal firm!
How to file for bankruptcy using DoNotPay:
How to file for bankruptcy using DoNotPay:
If you want to file for bankruptcy but don't know where to start, DoNotPay has you covered in 5 easy steps:
- Search for File for Bankruptcy on DoNotPay.
- Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.
- Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.
- DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.
- Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.
And that's it! Once done, the court will give you:
- Your bankruptcy case number
- The name of your bankruptcy trustee
- The date, time, and location of your meeting with your trustee
At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. Your trustee will then contact you for further financial documents you will need to provide. Make sure to attend your meeting as well as complete the post-filing bankruptcy debtors course!
- You will feel a sense of relief
- You have your case officially set
At this very time, your case has been sent to the appropriate authorities! Congrats! With the automatic stay in place, debt collectors can no longer contact you. Afterward, your trustee will contact you to seek further financial data. Maintain regular attendance at your scheduled sessions and complete the post-bankruptcy debtors course requirements!
Why Use DoNotPay to File Bankruptcy
DoNotPay may be able to help with a number of different aspects of bankruptcy. Consider using DoNotPay:
- DoNotPay may be found just about everywhere. They work closely with every bankruptcy court in the country.
- Filing and response times are lightning quick.
- A safe place to keep all of your important documents, as well as all the supplies you'll need.
- If you want to receive the best outcomes, just follow these steps.
What Else Can DoNotPay Do?
Do you feel a sense of relief now that you've made the most difficult choice of declaring bankruptcy? This information from DoNotPay may be helpful if you want to save even more time and money:
Take advantage of DoNotPay's assistance at this difficult time!