Dealing with debt becomes an overwhelming struggle for most people. That is why possessing extensive knowledge of the law is extremely crucial. Here are some facts that most people miss before filing for Chapter 13 bankruptcy.
Tenure of Chapter 13 Bankruptcy
It depends on a lot of factors. As of now, if one is to file for bankruptcy right away, it lasts a minimum of 3 years or a maximum of 5 years. If filed before the pandemic hit, then one might be in a position to extend it up to 7 years.
In certain circumstances, if one doesn’t hold a lot of debt and can pay all of it in under 3 years, then, of course, there would not be anybody left to pay and it would be over in less than 3 years.
Qualification For a Chapter 13
Anyone with regular income can easily qualify for Chapter 13 bankruptcy, it is a good kind for people who make too much money for Chapter 7. Because there one has to qualify by being under a certain income limit, whereas in Chapter 13 no such issue exists, but if one is making over the means they don’t qualify for that in Chapter 7.
It is a good sort of bankruptcy to file even for people who have had Chapter 7 discharge within the last 8 years, then one might turn to Chapter 13.
It is also a good strategic financial tool for ones who have fallen behind on mortgage payments, child support, tax payments, or alimony, but the court puts focus on what is feasible. In other words, one can make an ongoing monthly payment to Chapter 13 after considering the monthly expenses and everything that is needed to pay on a regular monthly basis.
Can Chapter 13 be filed Alone?
It is always a good idea to hire a Tucson Chapter 13 Attorney. But in papers, everybody is eligible to file all kinds of bankruptcies without an attorney.
But there exist so many special procedures, especially with Chapter 13 where one will need some support for 3 to 5 years and will have to calculate the monthly plan payment. There are certain formulas, there’s math that’s involved, and there are even time frames to manage specific rules. Because of all this, having an attorney at hand will help you do everything on time and as prescribed.
Why not file without an attorney?
If one is concerned about the filing cost with an attorney one should know that their Chapter 13 attorneys will wrap most of their fees into the chosen plan. You will not have to come up with all the money at once, and that can help a lot.
It’s the attorney’s plan correctly that you have to select wisely because if you overpay nobody’s going to complain but if you’re sending in too much money, nobody’s going to complain either. So, factor in all the charges they mention including the trustee’s percentage of that plan payment.
One will have to assure that they are paying everything like the taxes if they are behind on any or some other kinds of payments. Even the interest rates are variable. And hence, you should have a good amortization calculator. There are different rules for all kinds of debts. Your Chapter 13 Bankruptcy Attorney Tucson works with you and goes back and forth on all calculations.
Dismissal Of Chapter 13
A dismissal is a way to get kicked out of court. Here a case might get dismissed for several reasons like the monthly plan payments when not been made in a while. Sometimes a case can get dismissed even if certain forms haven’t been filed or scheduled with the bankruptcy. One needs to file even the pay stubs with the court, so if you miss even that little detail, the case can get dismissed.
A case might also get dismissed when some kind of non-compliance with certain rules or payments happens.
Chapter 13 Stay On Credit Reports
Just like the court judgments, any kind of bankruptcy stays on the credit report for 10 years. Even though it sounds daunting, that does not mean that it affects the credit score for 10 years necessarily.
Filing bankruptcy is not a financial death sentence, it does not imply that one is starting from zero for the next 10 years. One can build his/her credit score right after the bankruptcy period very easily.
It is surely going to be there for around 10 years but over time it becomes less and less important for allowing to rebuild the credit.
Conclusion
Chapter 13 bankruptcy attorney Tucson has various associated facts that require utmost focus and experienced attorneys mostly walk through all the phases of bankruptcy processes over years, so they are the people who can provide practical guidance according to the specific case issues.