Is Chapter 13 Your Best Option?

CNN Money reports that in September over 80,000 homes were repossessed by lenders and that foreclosures are up by 71%. The current national financial crisis is taking its toll on homeowners. In order to save your home, you may want to consider filing a Chapter 13 petition. MyLegalEdge.com offers bankruptcy packages for every state. Also, you may e-mail us at staff @mylegaledge.com. Plus, you can leave your comments here at MyLegalReview.com.

Is Chapter 13 the Best Option for You?

Chapter 13 may be an option for you if you have a regular income and need a little more time to pay your bills. Chapter 13 will allow you to reorganize your debts so that you will have the space you need to get your bills back on track. Chapter 13 will also allow you to stop foreclosure on your home and car repossession.

You must file a repayment plan with the bankruptcy petition. The plan must provide for fixed payments to the trustee designated to your case. Upon completion of the payment plan, you will receive a discharge. The bankruptcy discharge will be issued within 3-5 years. This is the amount of time that it will take you to complete the repayment plan.

Keep in mind that there are certain debts which the discharge will not cover:

• Claims for child support and spousal support (alimony);
• Educational loans;
• Drunk driving liabilities;
• Criminal fines and restitution obligations;
• Certain long-term obligations, such as home mortgages, that extend beyond the term of the plan; and
• Any debts not provided for in a wage-earner plan.

You must show proof that you are current on these debts prior to receiving your bankruptcy discharge.

In addition, you are also responsible for credit counseling prior to filing for bankruptcy and you must also complete a credit counseling program prior to receiving your discharge. You can find a reputable provider of these services at the U.S. Trustee Program website.

Making a Decision

After you weigh all your options, you will need to make a decision as to what is best for your financial future. Perhaps Chapter 13 is your best course of action. If so, we are here to help. Check out our bankruptcy forms at MyLegalEdge.com. Also, to contact us, send an e-mail to staff@mylegaledge.com or leave a comment here at MyLegalReview.com.