There are different types of bankruptcy. One type is called Chapter 13 bankruptcy. It was started to stop foreclosure, repossession, wage garnishment and lawsuits. In this type of bankruptcy you use your income to pay off your debt over time. The problem is that not everyone can qualify for this type of payment system. Typically, you have 3-5 years to pay off your debts. You have to prove to the court that you are good for the money and that your job will sustain the payments. If your income is too low, you may be denied.
In this bankruptcy choice the debtor files a petition with the bankruptcy court in their jurisdiction. They must list things like assets, income, debt, financial affairs and unexpired leases, tax returns. Trustees set up a meeting between the debtor and creditors to work out terms. Usually the debtor’s wages will be garnished until the debt is cleared.
If your debt is too high you will also be denied. Any secured debts can’t be more than $1,010,650 and your unsecured debts cannot be more than $336,900. Before you can file for bankruptcy you have to get credit counseling approved by the U.S. Trustee’s Office. They can charge a fee but can also reduce it if you cannot pay. Along with that there is also a filing fee which is $274. As well you have to file several forms.
The best part of this chapter of bankruptcy is that the person gets to keep his property and it can’t be liquidated. To date more than 250,000 home owners have faced foreclosures. You can stop foreclosure. Just contact a bankruptcy attorney and get the ball rolling. With this chapter you don’t have to deal with numerous debtors. You won’t have to deal with different partnerships and corporations down the road. This can make the whole process a bit easier.
Contact a Bakersfield bankruptcy attorney today!