What Are The Advantages Of Filing Chapter 13 Bankruptcy?

Are you feeling overwhelmed by a mountain of debt that seems impossible to conquer? Is your financial stability teetering on the edge, causing you endless sleepless nights? Take heart, for there is a solution that can bring you relief and pave the way to a brighter future. Here, we will explore the remarkable advantages of filing Chapter 13 bankruptcy. This powerful tool can help you regain control over your finances, protect your assets, and breathe easier once again.

At E. Orum Young Law, Bankruptcy Specialist, we understand your challenges when burdened with overwhelming debt. With a team of experienced bankruptcy attorneys, we are dedicated to helping individuals like you find the best path to financial freedom. 

There’s no time to waste when it comes to your financial well-being. If you’re drowning in debt and seeking relief, we urge you to take immediate action.Schedule a free case review with one of our skilled attorneys who will assess your unique situation and provide personalized guidance on the advantages of filing Chapter 13 bankruptcy.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, often referred to as “wage-earner bankruptcy,” allows individuals and couples to restructure their debt repayment plans. Qualified debtors have the opportunity to keep their assets, such as homes and vehicles, as long as they stay current on the agreed-upon payment schedule. This form of bankruptcy provides a means for individuals to regain control of their finances and work towards resolving their debts while maintaining ownership of their valuable assets.

What are the Advantages of Filing Chapter 13 Bankruptcy in   Louisiana?

When it comes to overcoming overwhelming debt, Chapter 13 bankruptcy offers significant advantages. This legal process provides you the opportunity to regain control of your financial life while protecting your assets. Let’s explore some of the advantages of filing Chapter 13 and how it can pave the way for a brighter financial future for you.

  • Provides you with several advantages over Chapter 7 liquidation. 
  • Opportunity to save your homes from foreclosure. 
  • Helps you to gradually catch up on your missed mortgage payments. 
  • Ability to restructure secured debts, excluding the primary residence mortgage, and extend them over the duration of the plan, potentially resulting in lower payments. 
  • Safeguards co-signers and protects them from liability on consumer debts. 
  • Eliminates direct contact with creditors to avoid  threatening or harassing phone calls toward you.

These are just some of the significant advantages of filing Chapter 13 for individuals facing financial difficulties. It’s important to understand the eligibility requirements and carefully weigh the considerations involved. It’s also crucial to assess whether you meet the criteria and consider the potential drawbacks before proceeding. 

If you want to know if you are eligible or not in filing Chapter 13,  it’s crucial to seek the guidance of a qualified bankruptcy attorney at E. Orum Young Law, Bankruptcy Specialist. Contact us today so we  can evaluate your specific financial situation, provide you personalized advice and guide you through the process of filing your Chapter 13 Bankruptcy to achieve the best possible outcome.

Are You Eligible In Filing Chapter 13 Bankruptcy?

Eligibility and considerations play a crucial role in the decision to file for Chapter 13 bankruptcy. Understanding the eligibility requirements and carefully considering the implications is essential. Here are some key points for you to consider in filing Chapter 13 bankruptcy.

  • Your Income Tax Returns Need To Be Up-To-Date.

To be eligible for Chapter 13 bankruptcy, you will need to provide evidence of having filed your federal and state income tax returns for the four tax years preceding your bankruptcy filing date.

  • Regular Source of Income

To be eligible for Chapter 13 bankruptcy, you must have a regular source of income that allows you to make monthly payments towards your debt repayment plan. Your unsecured debts must not exceed a certain limit, and your secured debts should not surpass a specified threshold.

It is crucial that your repayment plan includes full payment of certain debts; otherwise, the judge may decline to confirm it and grant you permission to proceed. You can utilize income from various sources to fund your Chapter 13  repayment plan. These includes the following sources:

  • Regular wages or salary
  • Income from self-employment
  • Wages from seasonal work
  • Commissions from sales or other work
  • Pension payments
  • Social Security benefits
  • Disability or workers’ compensation benefits
  • Unemployment benefits, strike benefits, and the like
  • Public benefits (welfare payments)
  • Child support or alimony you receive
  • Royalties and rents, and
  • Proceeds from selling property, especially if selling property is part of your primary business property.

What Are The Things I Need To Consider Before Filing Chapter 13?

  • Dischargeable Debts

It’s important to note that certain debts, such as taxes, child support, and student loans, may not be dischargeable under Chapter 13 bankruptcy. While the repayment plan can provide relief and a structured way to handle debts, it is a commitment that typically lasts three to five years, depending on your circumstances.

  • Credit Score Impact

Another consideration is the potential impact on your credit score. Filing for Chapter 13 bankruptcy will be noted on your credit report for several years. However, it also provides an opportunity to rebuild your credit by consistently making payments and demonstrating responsible financial behavior.

Navigating the eligibility requirements and understanding the implications of Chapter 13 bankruptcy can be complex. That’s why seeking the advice of our qualified bankruptcy lawyer is crucial. 

At E. Orum Young Law, Bankruptcy Specialist, we can assess your eligibility, guide you through the process, and provide personalized recommendations. Remember, every individual’s financial circumstances are unique, and professional guidance is the key to making informed decisions about filing for Chapter 13 bankruptcy.

Reach Out To Our Louisiana Bankruptcy Lawyer Today!

If you want to further know the advantages of filing Chapter 13 bankruptcy and how it can help with your current problems. Reach out to our Louisiana bankruptcy lawyer at E. Orum Young Law, Bankruptcy Specialist toda. We will discuss your options, explore the different advantages you have in filing Chapter 13 bankruptcy, and take the first step towards reclaiming your financial freedom. Call now to avail our free case review.

Remember, you don’t have to face the challenges of overwhelming debt alone.  At E. Orum Young Law, Bankruptcy Specialist, we can provide you with personalized guidance, assess your financial situation, and guide you through the Chapter 13 bankruptcy process. We will ensure that you make informed decisions and navigate the legal complexities with confidence.