Chapter 13 Bankruptcy Attorney in Vineland, New Jersey
If you have a regular income and you make more money to qualify for the Chapter 7 Law, then the chances are, you would opt to the Chapter 13 Law instead. This is because it is designed for people with debts who are still capable of paying off a certain portion of their debt by creating a repayment plan. With this one, you are entitled the right to keep all of your assets as long as you follow the repayment plan. Of course, the plan would still depend on the type of debt that you have, your income and expenses. With that said, it is often called reorganization bankruptcy.
To make things simple for you, Chapter 13 Law allows one to make installments for about 3-5 years to the creditors in order for them to pay off their debt somehow. If in case the applicable state median is higher than the monthly income of the one with the debt, then the plan would be for 3 years except when the court required a longer period for it. On the other hand, if the income is higher than the applicable state median, then one can expect that the plan would be for 5 years.
Anyone, both those who are running an independent business or self-employed can qualify for the Chapter 13 Law. Also, you need to fulfill the requirement of the court for credit counseling. You need to provide them a proof that they have received debt counseling at least 180 days before they have filed for it. If in case a debt management plan has been made, then there is a need to present it in the court as well. One also need to file their income tax returns and should have a debt that is not too high.
What Are the Advantages that You Can from It?
Apart from you being able to keep your properties, the Chapter 13 law also allows you to save your home if in case it is on the verge of foreclosure. Through it, you can also reschedule the secured debts that you have apart from your primary residence mortgage. With that, you are likely to pay a smaller amount of money for the payments you need to do.
What Are Some of The Properties You Get to Keep with The Chapter 13 Law?
Just like what was mentioned before, you get to keep your properties in this one including your home's equity. Some states have homestead exemption while some does not have it and so, you better do some research about the laws in your state. If in case you have purchased an insurance policy, then you can also keep it as well. You also get to protect the benefits that you would be receiving from your retirement plan if you have one. It's not only that for even your personal property or your household items would not be taken away from you. So, this can be a good option for you.