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Your Property and Bankruptcy: What Can I Keep When I File Chapter 13?
We understand that bankruptcy brings with it no shortage of questions. Particularly as there are different types of bankruptcy filing, some clients may find it difficult to keep up with the little details of their specific case.
But one large topic that is almost always asked about? The filer’s property.
If you’re looking into Chapter 13 bankruptcy and would like to have a better idea of what may happen to your property, we are here to provide you with some clarity:
The Basics of Chapter 13 Bankruptcy
Chapter 13 bankruptcy — also referred to as a reorganization bankruptcy — allows the filer to consolidate their debts into one easy payment plan that is completed within the span of three to five years in total.
Once this period ends and all payments are complete, the filer’s debts are discharged. For this reason, it is also best to avoid incurring new debt while undergoing repayment.
Additionally, this alternative to Chapter 7 bankruptcy is not available to everyone.
“To qualify for Chapter 13, you must have regular income, have filed all required tax returns for tax periods ending within four years of your bankruptcy filing and meet other requirements set forth in the bankruptcy code,” the Internal Revenue Service (IRS) clarifies.
Your Assets and Chapter 13
One of the primary reasons a person may choose to file for Chapter 13 is for the sake of their home.
“Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure,” as explained by the U.S. Courts. “By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time.”
The filer may also opt to undergo the bankruptcy court’s loan modification program.
Overall, Chapter 13 provides the filer with the opportunity to keep their car, home, and other assets, albeit they “must pay unsecured creditors an amount equal to value of nonexempt assets,” according to Experian.
When You File, You Aren’t Alone
Regardless of where you file for Chapter 7 or Chapter 13 bankruptcy, one thing remains the same: You’re not alone when you call Dolaghan Law.
Though bankruptcy sounds daunting at first, the truth is that it will actually offer you a fresh financial slate. When you undergo this process, you can take back control of your money and move toward the future with renewed confidence.
So, are you ready to experience the newfound fiscal freedom afforded by bankruptcy?
If so, it’s time to contact Dolaghan Law today by calling (904) 354-4935! We’re ready to streamline your filing and help you navigate the process with ease.