Bankruptcy is, unfortunately, a common occurrence for many American families. Although the immediate fresh start of a Chapter 7 bankruptcy is typically the more attractive option, many individuals with a regular source of income are not eligible for it. Fortunately, individuals with substantial assets and a steady income can still find debt relief through Chapter 13 bankruptcy. Although all bankruptcies are highly complex, a Chapter 13 debt restructuring bankruptcy may be even more so and usually requires the legal guidance of an experienced attorney.
Having substantial assets and a steady income does not prevent individuals from falling behind on bills or experiencing financial hardship. It may, however, prevent them from being eligible for a Chapter 7 bankruptcy. Complex issues like second mortgages, numerous car payments and business ownership may make the Chapter 13 bankruptcy process quite a bit more involved and confusing. That is why it is so important for individuals considering a Chapter 13 bankruptcy to work with an experienced bankruptcy attorney.
Like the fresh start of a Chapter 7 bankruptcy, the debt restructuring of a Chapter 13 bankruptcy is designed to help families struggling with out-of-control debt. Unfortunately, that is where most of the similarities between the two end. There are certain requirements that debtors must meet before filing a Chapter 13 bankruptcy, and a lengthy repayment plan that must be adhered to for it to be discharged. Not only can an attorney help petitioners successfully file their Chapter 13 bankruptcy, but they may also help filers avoid issues during the repayment period.
The Chapter 13 bankruptcy process is extremely complex and can be quite confusing without the legal knowledge of an experienced bankruptcyattorney. With their help, the entire process can be made easier, giving families the fresh financial start they deserve.