postheadericon 4 Things You Should Know About Chapter 13 Bankruptcy

When I transferred to a college in Irvine, California I had a similar experience under the guidance of another great music teacher of a similar name, Professor Herbert Geisler, thought that time with handballs. Alas, both experiences were now donkey's years ago. Before those short lived musical experiences I never even looked at a piano or even heard of hand bells. Sadly, I have long since reverted back to my old ignorant ways and have not gone near a piano or thought about the beautiful sound of hand bells being rung.

A Chapter 13 bankruptcy is also called a reorganization of debt. While some debts may be eliminated or greatly reduced, you're still required to make payments for the next 3 to 5 years. This means you may have to make significant sacrifices for the next couple of years in order to reemerge debt free. But how exactly will this affect you?

There is a voluntary bankruptcy, which is when you file for bankruptcy yourself, and there is an involuntary bankruptcy that is when your creditors are the ones that initiate the process of filing bankruptcy.

Bankruptcy cases are usually considered to be the last option for a person who is in deep debts and has no way to pay them off. The term 'bankruptcy' is a legal expression that represents the declaration of an individual stating his inability to get rid of his debts.

However, if you have property that clearly exceeds the exemption value - let's say you have $80,000 of equity in your home and are unable to exempt that - you could consider filing for Chapter 13. That's because if you file for Chapter 7, the trustee could theoretically sell off your house and use that money to pay off your creditors.

If you have any trouble making your payments, you should talk to your bankruptcy lawyer right away. If there are extenuating circumstances, your lawyer might be able to help, but you have to give him the opportunity to do so.

While a temporary stop doesn't bring permanent relief, there is nothing wrong with taking a breather. Filing for bankruptcy is a decision you need to make together with your lawyer in order to ensure that it's the right thing to do for your situation. But while you're figuring out the next step in the process, at least you don't have to worry about losing your home or car just yet.