Chapter 13 is one of the several types of bankruptcy filing in the US that may be known as “debt reorganization.” This may be a better filing choice for people who are demonstrably able to pay back some or most of their debt, and particularly, this bankruptcy filing may better serve the purpose than Chapter 7 filings if you’re attempting to keep property, like homes or cars.
Before filing pay a visit to a court approved credit counselor
Under Chapter 13, before filing, you have to visit a court approved credit counselor, and there you have to disclose information about every debt that is own by you. You also have to provide a list of your monthly expenses, including amounts you must pay on secured debt like mortgages or car payments to the counselor. The money that is left over is designated for the repayment of your other debts and debts are prioritized.
No Creditor can take any action against you
When you have filed chapter 13 then it usually stops any actions that are taken against you by those to whom you owe money. Once that you’ve filed the bankruptcy, most creditors are not able to sue you, or even continue harassing phone calls.
