Are You Filing for Chapter 13 Bankruptcy? 3 Questions You May Have
Filing for Chapter 13 bankruptcy is a major decision — one that will impact your future for years to come. Though bankruptcy has its share of benefits, it’s essential to obtain a basic understanding of the process prior to filing. Sam Turco Law Offices in Lincoln and Omaha, NE, will walk you through the entire process, starting by answering a few questions you may have.
Chapter 13 Bankruptcy FAQs
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows you to repay a portion or all of your debts under the protection and supervision of the bankruptcy court. When filing, you will submit a repayment plan to the court for approval. This will detail a payment schedule over a period of three to five years to be paid to a Chapter 13 trustee. The trustee serves as a middleman, collecting payments and distributing them to your creditors. Once debts have been satisfied according to the repayment plan, you will be discharged from any further liability.
What’s the Difference Between Chapter 13 & Chapter 7?
A major benefit of Chapter 13 bankruptcy is it allows you to retain all of your property. In exchange, you must repay all or some of the debt you owe. In Chapter 7, debts are typically repaid through asset liquidation, meaning nonexempt property will be sold to satisfy your creditors.
Is It the Same as Private Debt Consolidation?
Filing for Chapter 13 provides you with protection and relief not available through a private debt consolidation service. For instance, the court can prohibit creditors from foreclosing on your property, force creditors to accept a repayment plan that satisfies only a portion of your total debt, and discharge you of unpaid debt upon completion of your payment plan.
If you are considering Chapter 13 bankruptcy, Sam Turco Law Offices is the place to turn. Serving bankruptcy clients for over two decades, attorney Sam Turco will provide the advice and guidance you need to achieve the fresh financial start you’re after. Visit the firm online or call (402) 614-7171 to speak with a bankruptcy attorney.
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