Considering Chapter 13? Here are a few more details

On behalf of The Rollins Law Firm posted in Chapter 13 on Monday, June 23, 2014.

Recently we discussed the two most common kinds of consumer bankruptcy – Chapter 7 and Chapter 13. This week we wanted to add a few more points that might be helpful in case you're considering either form of debt relief.

Qualifying for Chapter 7 bankruptcy protection means that you would have to pass a "means test" showing that you don't make enough money to bump you into Chapter 13. As we said before, if you have heavy debt despite your regular income, then Chapter 13 is probably for you.

Chapter 13 offers some advantages that Chapter 7 doesn't necessarily provide. For example, Chapter 13 can be particularly effective in preventing or stopping foreclosure or the repossession of a vehicle.

It should also be noted that if someone co-signed on a loan with you, Chapter 13 also protects that person from creditor actions. Like you, the co-signer is liable for the debt, but the co-signer doesn't also have to file for bankruptcy to be protected from creditor actions. We call that protection a "co-debtor stay."

To get a Chapter 13 bankruptcy filing in order, you – or preferably your attorney – will have to gather a significant amount of relevant information to present to the court. You'll have to present a schedule of your expenses and income, a detailed outline of your liabilities and assets, and a list of any financial contracts or leases to which you are bound.

A Chapter 13 trustee will then assess your situation with a view toward establishing a workable repayment plan. It's best to have an attorney in your corner throughout the process.

Source: Ebony, "The Different Degrees of Bankruptcy, Explained," Lynnette Khalfani-Cox, June 19, 2014

Client Reviews
★★★★★
I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there. - Lashay H.
★★★★★
The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete. - Vinester Smith.
★★★★★
Fast response and professional advice. Really great to work with and understand what a difficult time in one’s life this is. Will recommend to anyone - Bryan Aust.
★★★★★
My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles. - Mike Zegelien.