click hereWhen someone is facing times of financial stress and difficulty, he or she may find bankruptcy to be the best option for achieving debt relief. Financial instability can put an inordinate amount of stress on every area of your life stress you shouldnt have to live with. One option for getting out of debt is filing for Chapter 13 bankruptcy where the debtor establishes a repayment plan set up by the bankruptcy trustee.

Unlike Chapter 7 bankruptcy where your dischargeable debts are wiped clean automatically, Chapter 13 bankruptcy lets you can pay off your creditors over a three to five year period. This allows you to make payments without too much financial burden and also is more forgiving on your credit score than Chapter 7. Unfortunately, there could be some potentially serious consequences if you miss a payment.

Missed Payment Consequences

The Chapter 13 repayment plan is a great way for debtors to get out of debt over time without completely destroying their credit score and also getting to keep assets. Creditors trust you will make all necessary payments to pay off your debts. However, if you miss a payment, you could face the following consequences:

  • * Forfeited chance of achieving debt forgiveness or having certain debts discharged
  • * Your bankruptcy case could be dismissed
  • * Forced to transfer to a Chapter 7 bankruptcy case

When your case is dismissed, you will have to wait an amount of time before you can file for bankruptcy again. If you have missed a payment, you shouldn’t panic. In some cases, you may be able to speak with the bankruptcy trustee and argue for a lesser punishment.

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If you or someone you know is facing financially trying times you should consider filing for bankruptcy to achieve debt forgiveness. Let a bankruptcy attorney take a look at your case and help you every step of the way.


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Facing bankruptcy can seem daunting at first, with the stressful financial situation a person is likely facing in addition to the number of choices he or she has regarding bankruptcy. But filing for bankruptcy can be a great financial relief, as a person has taken the first step toward regaining financial freedom from his or her debts. Once you have decided that bankruptcy is right for you, the decision on which form of bankruptcy suits your situation comes next. Many debtors settle on Chapter 13 bankruptcy as their solution. Similar to Chapter 7 bankruptcy, Chapter 13 can be filed by both individuals and businesses, making it one of the more popularly accessed forms of bankruptcy. However, there are important differences between Chapter 7 and Chapter 13, and if you are thinking of filing for Chapter 13, it’s important that you recognize those differences.

Important Distinctions

Chapter 13 bankruptcy is often filed by individuals who don’t qualify for Chapter 7 bankruptcy. While the two seem very similar at times, there are key distinctions between them that many people are unaware of. For instance, some of these differences include:

  • Asset liquidation in Chapter 7 vs. Asset retention in Chapter 13
  • Construction of repayment plans in Chapter 13
  • Application of the means test in Chapter 7
  • Different eligibility requirements for Chapter 7 and Chapter 13

These differences matter greatly when a person is deciding on which form of bankruptcy to file.

Get Legal Assistance

If you or someone you love has been facing financial distress for a while and think that there is no way out of debt, bankruptcy may be the answer. If you want legal assistance or advice regarding the bankruptcy process as it pertains to your particular circumstances, contact an experienced bankruptcy lawyer today to discuss your position.


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