Bankruptcy these days is becoming a household term, even though many are still trying to keep it a secret. In 2010, there was close to 1.6 million people filing bankruptcy. Because of pride, most people only let their close friends know the financial difficulties they are suffering. Trying to find out information on filing bankruptcy can be complicated because you don't know who to believe. On one hand, if your friends would be more open about their bankruptcy filing you could get some first-hand advice of how their filing went. So, consequently, you are forced into reading blogs and law office advertisements online. There is a lot of good information on the Internet, but there is also much misinformation. There are stories online of how Chapter 13 bankruptcy didn't help because there was little money left over to live on. This doesn't sound right because the reason bankruptcy was created was to provide relief for individuals that couldn't afford their debts.
Bankruptcy Attorney Clearwater, Provo Bankruptcy Attorney, Hawaii Bankruptcy Lawyer,
In a nut shell, Chapter 13 bankruptcy is usually used in situations where an individual is trying to protect their home from foreclosure. In many of these cases, the people have large amounts of unsecured debts that are choking off their ability to make all their bills along with their mortgage payment. The only reason a Chapter 13 payment plan is unfeasible is because the debtor bit off more than they could chew when setting it up with their bankruptcy attorney. Filing bankruptcy under Chapter 13 gives the debtor a lot of flexibility to modify the payment plan midstream if they feel they can't afford it. The last thing the bankruptcy court wants to do is have the debtor fail.
I think many stories online get mis-communicated with the debtor venting because things didn't go the way they expected. One thing that Congress hasn't put into a bankruptcy filing is the ability to modify a mortgage. Some people have just outright spent more on their home than they can afford. If a person's mortgage is too high the debtor should consider letting it go in the bankruptcy and possibly filing a Chapter 7 to wipe out all their unsecured debt. If the first trust deed is doable and it's the second and third, along with a car loan and credit card debt that is causing the inability to make ends meet at the end of the month, a Chapter 13 bankruptcy might be just what the doctor ordered.
In a Chapter 13 bankruptcy, all debts are paid by priority with secured debts and court ordered payments at the top. Going down the list, having unsecured debts like signature loans and credit cards at the bottom. With the value of property dropping substantially all over the United States, many people's property is worth less than they owe. If the value of the property has dropped below the amount of the first trust deed, the debtor can strip off the second and third making them unsecured and a non-priority payment claim. The Chapter 13 trustee pays the creditors according to priority during the 3 to 5 year payment plan. If the amount of payments to the secured debts is substantial, many times the unsecured debts only get paid a minimal amount with the balance being discharged at the end of the bankruptcy filing.
Don't believe everything you read online, especially on the blogs. When things don't go as people plan they will post a slanted article not showing both sides of the story. When you're serious about filing bankruptcy, don't waste a lot of time reading articles, consult a bankruptcy attorney to see if there are any benefits for your situation.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Records
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment