Saturday, August 15, 2009

Chapter 13 Bankruptcy....explained

Chapter 13 Bankruptcy also referred as reorganization. Bankruptcy benefits you when you have outstanding debt and all your attempts have been failed to repay your debt, Filing Chapter 13 Bankruptcy can also help you to avoid foreclosure, it also helps you to repay your debt partially or all of your debt within a specific period of time. Usually the time taken to repay your multiple debts can be 3 to 5 years.

When to file Chapter 13 Bankruptcy?

When you are experiencing any of the following situations:-

* You are willing to pay off your secured debts.
* You are not in a situation to pay off your monthly payment of mortgage.
* You have more property lien compared to collateral value.
* You are not able to clear off your debt filing Chapter 7 bankruptcy.
* You earn more then the requirement for filing chapter 7.
* And last but not the least you want your valuable asset to keep with you by not using it to pay of your debt.

Eligible criteria for filing Chapter 13 Bankruptcy:-

1.You should have income on a regular basis so that you don’t find any difficulties to pay your monthly payments.

2.Before filing Bankruptcy within last six months you must have enrolled in session of credit counseling.

3.You must have your gross monthly income more then you’re estimated median income.

4.If you have filed Chapter 7 Bankruptcy before, then you have to wait for four years to file Chapter 13,you can’t file Chapter 13 within two years.

Hope this article will be helpful for those who need to file Chapter 13 Bankruptcy.

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