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Charleston Bankruptcy Lawyer: What is Chapter 13 Bankruptcy?

Your Charleston, SC bankruptcy lawyer has discussed your options with you and you’re leaning towards Chapter 13 bankruptcy. What exactly does that mean?

Most people, if not all, who see a bankruptcy lawyer wish they didn’t need to consider filing at all. Unfortunately though, many of us are in situations where we need to turn to a bankruptcy lawyer for advice and guidance because there just is no other way to solve the situation. There are different options for bankruptcy, including Chapter 13 bankruptcy, which is what we’ll be focusing on within this article.

Chapter 13 bankruptcy means you pay off your debt on a type of payment plan that you and your Charleston, SC bankruptcy lawyer develop together. If your bankruptcy lawyer has suggested you file for Chapter 13 bankruptcy, this means there’s hope for you to actually pay off your debt obligations and save your credit more than if you filed for Chapter 7 bankruptcy. You and your bankruptcy lawyer will develop a repayment plan to share and discuss with your creditors.

Chapter 13 bankruptcy requires you complete credit counseling before filing, and you’re Charleston, SC bankruptcy lawyer can guide you on the timing and process. Your bankruptcy lawyer will guide you in how to go about getting credit counseling and in addition, should be able to provide resources for you to use.

Chapter 13 bankruptcy means you’ll get to keep your home and assets. While you and your Charleston, SC bankruptcy lawyer work out a repayment plan for your debts, you’ll get to keep your assets. However, you do need to continue to make the payments on these assets throughout the bankruptcy proceedings.

Chapter 13 bankruptcy means debt collectors and creditors cannot continue or start any new collection efforts while you’re in your repayment plan period. Your Charleston, SC bankruptcy lawyer should be the first person you contact if this doesn’t happen.

Chapter 13 bankruptcy doesn’t hurt your credit as bad as Chapter 7 does in most cases, but your credit will still take a hit. Your Charleston, SC bankruptcy lawyer should be able to walk you through rebuilding your credit score post bankruptcy.

Chapter 13 bankruptcy repayment plans can last anywhere from 36 months to 60 months, though most of the time, repayments are to be made and completed in full within the 36 month time frame. Your Charleston, SC bankruptcy lawyer and you can work together with creditors to develop the best plan for you, but in most cases, your creditors will want the payments as soon as possible, and within 36 months.

These are just some of the highlights of Chapter 13 bankruptcy, but each case has unique circumstances. It’s important to do your own research and also work with a good Charleston lawyer to ensure you’re making the right decisions when entering into and going through Chapter 13 bankruptcy. You don’t need to go it alone, nor should you; it’s not a wise decision for you to attempt to do so. Good luck!