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All About Filing for Chapter 13 Bankruptcy

Filing-for-Chapter-13-Bankruptcy

Nov,01,2016

By:Mike Cibik

The decision to file for bankruptcy isn’t an easy one; however, it can wind of being one of the best decisions you’ll ever make — it’s also nothing to be embarrassed about. Here at Cibik & Cataldo PC, we’ve been the leading personal bankruptcy lawyers serving Philadelphia County, PA for years. As such, we know that some people mistakenly think that when a person files for bankruptcy, he or she has lost control of their finances, but it’s actually quite the opposite. You see, filing for bankruptcy is the first step one takes on the road to regaining control of their financial livelihood. This is especially true in regards to Chapter 13 bankruptcy.

What is Chapter 13 bankruptcy?

Where Chapter 7 bankruptcy is a liquidation, Chapter 13 bankruptcy give individuals who have who have regular income the opportunity to pay back their debts over time. Typically, the debtor will propose a payment plan and the court will approve it. The timeframe usually allotted is up to five years, but it can be extended on a case-by-case basis. Then, debtors pay a trustee who distributes that money to the debtor’s creditors.

Who is eligible for Chapter 13 bankruptcy?

Any person, regardless of whether he or she is self-employed or operates an unincorporated business, is eligible for Chapter 13 bankruptcy.

Why do people file Chapter 13 bankruptcy?

Those who file Chapter 13 bankruptcy, usually, have simply run out of means to keep themselves afloat in unexpectedly treacherous financial waters. Think of it less as a way out and more of way to consolidate debt.

How does filing for Chapter 13 bankruptcy work?

Debtors file a petition with the bankruptcy court serving his or her jurisdiction. Then, the person filing will provide information such as a schedule of assets and liabilities, current income and expenses, information about contracts and leases, and a statement of financial affairs.

When do people file for Chapter 13 bankruptcy, and where do they go to do it?

Again, think of it as a consolidation loan. If you feel as though you are suffering because of too much debt that you can’t pay off, call us here at Cibik & Cataldo PC and we will provide the guidance you need in the filing for bankruptcy process in Philadelphia County, PA.

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