Chapter 13 Bankruptcy Rules

Gain All Without Losing

By: - Debt Consolidation - March 24, 2011
chapter 13 bankruptcy rules

Chapter 13 Bankruptcy rules are made for the people who are under heavy debts and are not capable of paying them back. According to these rules the government cannot be harsh to the people and gives them a chance to re-organize their financial status and become capable again to repay their debts on regular basis. To elaborate it can be said that if you have a regular income and you have some depths to pay which you are not capable of because of limited salary you can file bankruptcy according to chapter 13 rules. However prior to filing for bankruptcy you need to have your credit counseling done by any agency that is approved by the trustees of your area. These agencies give you credit counseling in order to guide you through the process of filing for bankruptcy and also in what circumstances you should file for it. These agencies will also tell you as when you are eligible to file for bankruptcy. Since these agencies are approved by the trustees they are allowed to charge some amount against the services they provide. In case you are not capable of paying their service charges these agencies will provide you free consultation according to the policies applied by the trustees.

In order to become eligible to file for bankruptcy according to Chapter 13 Bankruptcy rules you should show your income as “disposable income”. This will prove that the income that you are earning is consumed up in daily expenses of your life. The remaining amount, if anything is left behind, is spent paying back loans or bills of credit cards.

Also, according to Chapter 13 Bankruptcy policy you cannot be forced by any legal bodies to sell of your valuable assets in order to pay the losses back. These valuable assets include any highly priced entity or an asset with emotional attachment or extremely high rates. An example for this kind of properties can be the inherited house, building or any business factory.

There are times when people who have been under debt for quite a long time feel mentally harassed to the extent that they choose any solution randomly in order to find relief from their current situation. Generally they are not aware about chapter 13 policies for bankruptcy which are designed to help people re-organise their financial aspects and that too without losing any of their valuable assets.

To summarize the things below are the points which could help you file for bankruptcy in critical cases:

  • Whenever you find that you are not able to pay the debts back give yourself some time, say a day or two, to plan out your next move.
  • In case you come up with the idea of filing for bankruptcy take complete time to educate yourself about various bankruptcy rules.
  • Before filing for Chapter 13 Bankruptcy contact any trustee approved agency for free or less paid credit counseling in order to gain some more information about your situation.
  • After educating yourself and completely understanding the terms and conditions you can finally file for Chapter 13 Bankruptcy according to Chapter 13 Bankruptcy Rules.

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