Filing Chapter 13 Bankruptcy
There are two chapters of bankruptcy commonly used by individual debtors, Chapter 7 and Chapter 13 bankruptcy . Although many debtors with no assets file Chapter 7 bankruptcy , there are many debtors who need to file Chapter 13 bankruptcy and enter into a repayment plan to save their assets.
Let’s take a look at who these debtors are:
- Debtors who have income that will allow them to pay their expenses and they have disposable income. For example, a debtor earning $4,000 a month with only $3,000 in expenses may be a candidate for Chapter 13 bankruptcy.
- People who are delinquent on their secured debt payments (i.e. mortgage or car payment) and want to keep those assets. Chapter 13 bankruptcy allows these debtors to repay these debts over an extended period of time.
Having income and assets are the important indicators that suggest a debtor may be appropriate for a Chapter 13 bankruptcy. To find out how Chapter 13 bankruptcy can help you protect your assets from creditors, contact a Dallas-Fort Worth bankruptcy attorney today.