People filing for Chapter 13 bankruptcy reorganize debt into a multi-year repayment plan and receive protection from punitive actions by creditors. For someone with a steady stream of income who can repay debts if offered more time, getting Chapter 13 bankruptcy help may be the best way to retain the home and car while getting back on track. However, everyone does not qualify.
Chapter 13 Bankruptcy Help
Chapter 13 bankruptcy is only an option for people who have a regular source of income from which pre-determined monthly payments can be drawn. Disposable income must be sufficient to support regular payments after living expenses are paid. In addition, the amount of unsecured and secured debts must fall within certain limits that are subject to periodic updates. An attorney can help individuals in debt determine whether they qualify for Chapter 13 bankruptcy.
Employment is not a requirement of filing for bankruptcy and many people are forced into Chapter 13 bankruptcy repayment plans because they lose their jobs. However, unemployment can affect the outcome and effectiveness of a bankruptcy filing. Unemployed individuals who file for Chapter 13 may have difficulty being approved if they cannot prove that they can afford the payment plan. Getting the right Chapter 13 bankruptcy help is important to learning what your rights and options are.
Getting Chapter 13 Bankruptcy Help is Possible Today!
Many people choose Chapter 13 because it allows them to catch up on mortgage payments that are in arrears, eliminate a second mortgage, and reduce their car loans. However, the monthly payment requirement may make Chapter 13 infeasible for debtors who do not have regular income. That is not to say that unemployed individuals will not qualify. Between unemployment and Social Security benefits and alternative sources of income, many unemployed debtors earn more than enough money to cover regular living expenses and a Chapter 13 payment plan.
Unemployed individuals must prove to the court that they can afford this plan. Those who obtain a job while their bankruptcy is in place should notify the bankruptcy trustee or court and provide documentation that substantiates their income. Getting a job makes it easier to afford the payments and may even enable debts to be repaid more quickly than initially expected.
If you are unemployed but want to handle existing debt in a manner that will save your home and car, consult with an attorney to find out whether Chapter 13 is an option. By identifying alternative sources of income, the lawyer may help this type of personal bankruptcy to become a possibility. Chapter 13 bankruptcy help and advice can erase debt without selling all of your assets, even if you are unemployed.