Chapter 13 Attorneys Buena Park Will Point Out the Advantages of Filing

Although you may think that all bankruptcy is the same this is not the case. I was speaking to a bankruptcy law attorney Buena Park last month and he pointed out that chapter 13 Buena Park, or wherever, has certain advantages over bankruptcychapter 7 Buena Park 

In a Chapter 13 bankruptcy, you make monthly affordable payments that will go to your creditors. A Chapter 13 bankruptcy has many benefits. For example, Chapter 13 allows you to pay back amounts that you owe on car loans or mortgage loans. You can pay the back amounts owing even if the creditor does not agree. By being in a Chapter 13 payment plan, you can prevent repossession and foreclosure. It is a very valuable tool and it may allow you to keep property that you could have lost to creditors if you had filed a Chapter 7 case

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The Chapter 13 plan payments are designed to be affordable for you and are typically much less than what could be negotiated through creditors directly or through "debt settlement companies" located in other states – many of whom offer payments that that are not much lower that what the credit card companies offer. At the end of the Chapter 13 plan, credit card, medical and many other types of debt will be completely eliminated as a reward for completing the plan.

There are other great reasons to file a Chapter 13. One can use a Chapter 13 to pay many back taxes and child support debts which you could not normally eliminate in a Chapter 7 case. Furthermore, if your household income is too high for a Chapter 7, a Chapter 13 may be the best option. People find that Chapter 13 plan payments are much less than they would have to be normally without filing.

In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs, and schedules, the debtor must compile the following information:

·         A list of all creditors and the amounts and nature of their claims;

·         The source, amount, and frequency of the debtor's income;

·         A list of all of the debtor's property; and

·         A detailed list of the debtor's monthly living expenses, i.e., food, clothing, shelter, utilities, taxes, transportation, medicine, etc

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Married individuals must gather this information for their spouse regardless of whether they are filing a joint petition, separate individual petitions, or even if only one spouse is filing. In a situation where only one spouse files, the income and expenses of the non-filing spouse is required so that the court, the trustee and creditors can evaluate the household's financial position.

Bankruptcy law attorneys Buena Park and specialist chapter 13 attorneys Buena Park have an obligation to tell you the truth and to encourage you to do the same thing too. it is not advisable to be dishonest as you will not be able to get the correct advice and help. You may also find yourself in further trouble by being accused of being fraudulent