Understanding Chapter 13 Debt Consolidation

Unlike Chapter 7 bankruptcy, which is a liquidation bankruptcy that wipes out most all debts a person has, Chapter 13 is considered a reorganization bankruptcy. People filing Chapter 13 will enter repayment plans that typically last three to five years.

If you are considering filing for Chapter 13, you will want to have a bankruptcy attorney in Hopewell VA from Canfield Wells LLP helping you secure the most favorable repayment terms possible. Our bankruptcy attorney City Center Richmond VA will be able to ensure that you are able to keep the property most valuable to you and protect your rights throughout the bankruptcy process.

Chapter 13 does not simply wipe out your existing debts but instead sets up a plan that allows you to repay some of the debt over a period of time. Chapter 13 is more favorable for people with assets that may be in jeopardy with a Chapter 7 filing.

A Chapter 13 bankruptcy can be especially beneficial for people concerned about possibly losing their homes in a bankruptcy filing, as most individuals will be able to stay in their residences so long as they are able to make their rent payments on time. In many cases, Chapter 13 allows people to obtain more favorable repayment terms for many debts when creditors may be seeking immediate payment.

Chapter 13 cannot eliminate all debts, however, as student loans, unpaid alimony, and child support cannot be discharged in any bankruptcy filing. There are also specific limits to the amount of unsecured debt that a person has.

When a person files for Chapter 13, they will submit their own proposed repayment plan and creditors will have the opportunity to express any objections at a meeting of the creditors. A trustee will be assigned to a Chapter 13 case to ensure that all payments are distributed to creditors.

Make sure you contact Canfield Wells LLP before you file for Chapter 13 so you can have an experienced bankruptcy attorney in Hopewell VA on your side. Our firm will provide a bankruptcy attorney City Center Richmond VA who can help you qualify for Chapter 13 and move on with your life.