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Chapter 13 Bankruptcy
There are laws that have been passed by the U.S. Congress that have established a set of uniform statutes for the purpose of governing how bankruptcy is handled. Under the umbrella of the bankruptcy code these statutes address the various legal issues involved with a bankruptcy. One of the provisions under the bankruptcy laws is known as Chapter 13 Bankruptcy. Chapter 13 is designed to allow a debtor to start fresh while they continue pay off future debt. In theory, bankruptcy allows an individual to continue to make their living while at the same time paying off their debt obligation. However, prior to entering bankruptcy one can expect any number of tactics on behalf of the various creditors regarding getting the individual to pay off the debt that they owe. And in some cases, the creditor's methods can become quite aggressive. By filing for chapter 13 bankruptcy protection you can end the attempts of the creditors to force payment. With chapter 13 bankruptcies, the person who has gotten into insurmountable debt has the opportunity within the court system to relieve themselves of their financial burden. This is accomplished through the courts and a bankruptcy attorney. The type and amount of payment to the creditors is discussed and negotiated and eventually agreed upon with approval from the court. The goal is that a new payment obligation can be established which allows for the relief of the debt and for the person to maintain basic monthly living expenses. Once you have filed for a chapter 13 bankruptcy your creditors can no longer communicate with you concerning the amount owed to them. There is a 5 year ceiling period for you to effectively pay off the amounts that you owe. This repayment scheme will be a part of the overall plan that will be a part of the court proceeding as it pertains to your ability to pay down the debt. As a part of the chapter 13 bankruptcy filing, the court as the right to oversee how your repayment consistency is progressing. In fact, your financial interests will be under the scrutiny of your attorney and the courts.
Chapter 13 bankruptcy is generally an option to anyone that has a source of regular income which will hence allow for the negotiation of the eventual payoff of the various amounts agreed upon. Once the payment obligations have been met, the individual will be eligible to receive a full discharge.
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