A Look at Chapter 13 Bankruptcy Rules


 

Filing chapter 7 bankruptcy

Most of us realize that bankruptcy filings have been on the rise during the past few years. In fact, during the first quarter of 2012, approximately 313,775 bankruptcies were filed. Interestingly, Chapter 13 bankruptcies were down 10% in the United States between 2012 and 2013.
Many people are considering filing for personal bankruptcy due to financial difficulties and often have questions about the different types of bankruptcy filings, Chapter 13 bankruptcy rules or Chapter 7 bankruptcy laws.
Chapter 7 filings concern the liquidation of assets in return for erasing large amounts of debt, while Chapter 13 bankruptcy laws allow a individual to reorganize their debts and create a repayment plan.
Chapter 13 bankruptcy rules state that people with $1,081,400 or less in secured debt can qualify to file for Chapter 13 bankruptcy. While Chapter 13 bankruptcy rules are fairly easy to follow, it is still wise to have the guidance of an attorney to help you through the court filings and procedures. The Federal Bankruptcy Rules govern how bankruptcies happen, as well as the filing requirements under Chapter 13 bankruptcy rules.
To file under Chapter 13 bankruptcy rules you will need to compile detailed information on your debts, including mortgages, taxes owed, and credit card balances. In California, you are allowed $75,000 to $125,000 in home equity before it becomes liquidated due to bankruptcy.
Before filing, you should exhaust any other options to help you clear this debt. Because Chapter 13 bankruptcy laws and filings can have a negative impact on your credit scores, if you can utilize other options such as credit counseling, it would be beneficial.
Under Chapter 13 bankruptcy rules, you will need to create a repayment plan. An attorney can help you set down this budge so that it will be accepted by the courts. You will also be required to receive a certification from a credit counseling agency as part of the Chapter 13 bankruptcy rules.
A hearing will be scheduled to go over your filing and proposed repayment plan. Once this plan has been accepted, you are expected to adhere to this plan under Chapter 13 bankruptcy rules.
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