What is the Filling of Chapter 13 Bankruptcy?
In accordance with the filing of chapter 13 bankruptcy, you can hold onto the house and other minor assets. Meanwhile, you can pay back your debt with time. Chapter 13 bankruptcy is also known as a wage earners plan, as a low, middle-class individual can formulate a plan and repay portions of his debts. Under this specific Chapter 13 of bankruptcy, people in debt are allowed to plan out an appropriate financial plan to return money to banks or creditors. Debtors can start repaying their debts within three to five years. Make early and wise contact with an Atlanta bankruptcy attorney to guide you in your tough times
What is the Average Yearly Debt Payment Under Chapter 13 Bankruptcy?
A borrower should always plan out a certain amount that he will be bound to pay to the creditor or the banks during a whole calendar year. Every loan lender and banks have different schemes and channel through which they approve a repaying debt process. Loans granted against the house and real estate businesses have high repaying rates, whereas a low middle-class man can take advantage by paying $6000 at the end of the year or $500 monthly. All the repaying process is finalized between the debtor and creditor and varies from case to case.
Are there Any exemptions in Ongoing Chapter 13?
If a person loses his monthly income source or gets jobless, he can always have better work options. Many financial advisers and law firms advise you to file chapter 7 of bankruptcy and get a clean slate from all your past credit history and loans. If a person’s job is sacked, he can request immunity from all his debts from creditors by filing under chapter 13 of bankruptcy. If you face a drastic loss in your reoccurring monthly wages, you can modify your repaying process and pay less to the creditors. There is always room for modification, in which you can start repaying with your revised monthly income.
If a person is unemployed and finds a better working opportunity, he temporarily suspends his paying term for three months. This is an extended period for one individual to find new employment. This move helps you plan out current and future payment plans, move on with a reduced repaying debt process, and overcome physical pressure and stress.
How to Avoid Bankruptcy in Near Future?
One should always plan out his financial year, keeping all essential spending and unforeseen situations in mind. It is recommended to look for a financial planner or otherwise maintain a personal ledger to mark all your necessary spending on luxury and needs. Take loans with low markup percentage and plan to spend them wisely on investment. Always keep in mind there is no escape at the time of repaying loans. Reduce the excessive use of credit cards and work on to improve your bad credit history. Keep yourself distant from companies offering attractive credit card schemes with high credit interest rates. If you have an effective and healthy spending pattern, you will feel confident over your savings and future long term plans.