Bankruptcy cases offer several codes that an individual or a business firm can avail to. The most common of all the chapters are Chapter 7 and Chapter 13. In this article we will discuss about the Chapter 13 bankruptcy code.
Filing for bankruptcy is pretty complicated. Even if you understand the different types of bankruptcy and know which one is best for you, you still need to file all the right forms and understand the intricacies of bankruptcy court. A qualified bankruptcy attorney can help you sort through the confusion and make sure that your case does not get thrown out.
The Chapter 13 discharge is similar to a Chapter 7 bankruptcy (credit card bankruptcy) discharge in that you can eliminate as much of your debt as the bankruptcy law will allow you to eliminate. But unlike Chapter 7, in which you obtain a discharge (elimination) of your debts in about 90 days, in a Chapter 13 you have to complete a 3-5 year repayment plan before obtaining a discharge.
Filing bankruptcy in this situation may result in homeowners having several additional months to cure the default. While the automatic stay is in effect, the lender, new owner, or local government can perform no action to confirm the sale or remove the borrowers from the house. Even if a Chapter 13 is filed, the owners will be able to cure the default through a repayment plan -- even though their home was sold at auction.
The bankruptcy attorney should always be able to explain the following issues to you during your consultation : the differences between a Chapter 7 and Chapter 13 bankruptcy; the advantages and disadvantages to filing bankruptcy in general; and whether bankruptcy is the best option for your financial situation .
It will be interesting to see if the proposed changes to the bankruptcy code make it out of committee. There will be a huge opposition from the banking industry. That same industry spent over 8 years lobbying for the bankruptcy reform act of 2005. I doubt that they will be willing to give back one inch of the reform measures that they fought so long and hard to obtain. It is also possible that the big reform push may occur after the upcoming election. If the Democrats retake the white house, more liberal reforms will surely follow. I hope that homeowners can hang on no matter who is elected.
It's also possible that you don't want to get rid of certain debts. For example, if you want to keep your home, then you need to keep making the mortgage payments on it. If you are behind on your mortgage, then Chapter 13 bankruptcy can help you play catch-up, but you probably won't be able to change the monthly payment amount.
A plethora of online bankruptcy loan will reduce your financial burden and get you fast loan after you have merged out of your debts. Your dream home can take wings with uk bankruptcy loan post bankruptcy discharge. Also avail of online quotes and compare the loan terms, conditions and rates before you take up any personal bankruptcy loan.